defination of work contract under tds

[Asked by Guest]

Hi Users,

can any one tell me the definition of work contract under TDS.

we are purchasing some goods from another co and sale it to us as per our order like our co name is printed on those goods which is sale by them to us.

Can we liable to deduct tds on it..........?? and Why........??

[YAGAY and SUN]

Dear Shravan

works contract includes any agreement for carrying out for cash or for deferred payment or for valuable consideration, the building construction, manufacture, processing, fabrication, erection, installation, fitting out, improvement, repair or commissioning of any moveable or immovable property;

If you are purchasing goods which are made as per your specification from your supplier then there is no need to deduct TDS provided you had paid VAT/CST on such goods.

Team YAGAY & SUN

(Indirect Tax Consultants)

Thanks sir.

AI Summary

Works contract definition: TDS applies to construction or fabrication agreements; supply-made-to-specification may be exempt if VAT/CST paid.
A works contract means any agreement for cash, deferred payment or valuable consideration for carrying out construction, manufacture, processing, fabrication, erection, installation, fitting out, improvement, repair or commissioning of movable or immovable property; transactions where a supplier manufactures goods to the buyer's specification and sells them as goods do not attract TDS if the sale has been subjected to VAT/CST.