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Tds vis a vis Vat

TDS / TCS 1326 views 3 replies

Dear All, Please help.

A Company purchases bags from a Party & asked it to print Companies name on it too.The party has charged Vat on the said bill. Now i want to know whether Tds will be deducted, if yes, then on which amount. The party has not charged separate bills.

Thanks

Replies (3)
Dear Ritesh is it not possible that the supplier has decided the selling price per bag taking into consideration that the purchaser will ask to print its name and the cost of printing the name per bag is so negligible that he has not separately charged such cost in the bills raised. It is just like a saree vendor giving a bag to carry the saree free of cost to each customer. The saree vendor does not charge for the bag.Hence no TDS since the bill is for Sales only.
I think u are asking about deduction taxes under Income Tax Act. In this case u are not liabale to deduct TDS under section 194C. You may refer Dabur India Ltd. 's case. If you want to ask some thing about VAT, please revert.
What will be the TDS rate applicable for non resident individual providing professional services to an Indian co?


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