Allicability of TDS

[shubham sinha]

Dear Sir , A State Society made payment of ₹ 1385000/- in 2013-14 (rate decided through tender) for printing and supply of books without deducting TDS . Is there any liability to deduct TDS and which rate?

[CA SOHRABH JINDAL]

TDS should be u/s 194C

AI Summary

TDS under section 194C applies to printing and supply payments; the payer must withhold tax accordingly. Payments by the State Society for printing and supply of books are subject to Tax Deducted at Source as payments for contract services; the payer was obliged to deduct TDS at the prescribed rate for contract payments and to account for that withholding under the contractor-payment TDS provisions.