TDS
Querist :
Anonymous
(Querist) 07 April 2011
This query is : Resolved
REGARDING TDS ON WORKS CONTRACT U/S 194C WEF 01/10/2009, THE EXPRESSION “WORK” SHALL ALSO INCLUDE MANUFACTURING OR SUPPLYING A PRODUCT ACCORDING TO THE REQUIREMENT OR SPECIFICATION OF A CUSTOMER BY USING MATERIAL PURCHASED FROM SUCH CUSTOMER. HOWEVER IT WILL NOT INCLUDE MANUFACTURING & SUPPLYING A PRODUCT ACCORDING TO THE REQUIREMENT OR SPECIFICATION OF A CUSTOMER BY USING MATERIAL PURCHASED FROM A PERSON, OTHER THAN SUCH CUSTOMER.
WHAT WOULD BE SITUATION, IF MANUFACTURING & SUPPLYING A PRODUCT IS DONE ACCORDING TO THE REQUIREMENT OR SPECIFICATION OF A CUSTOMER BOTH BY USING MATERIAL PURCHASED FROM SUCH CUSTOMER AS WELL AS MATERIAL PURCHASED FROM A PERSON OTHER THAN SUCH CUSTOMER.
soumitra basu
(Expert) 09 April 2011
You have good point to argue. But to be on the safer side it is better to deduct TDS and deposit.Otherwise the expenses shall not be deductible.
