194C - TDS on Contracts

[Guest]

Sir/Madam,

Some tailors are providing Uniforms for our Company. Cloth required is purchased by the Tailor only. Whether we are required to deduct TDS under Section 194C at the time of payment to the Tailor?

[Ganeshan Kalyani]

TDS deducted and paid at your end is credit to the service provider based on Form 16A that you would be issuing.

[PANKAJ GUPTA]

no tds is applicable on supply of uniform. Only VAT is payable is applicable.

AI Summary

TDS on contracts: question whether payments to tailors for uniforms attract Section 194C; replies conflicted on applicability. Whether payments to tailors who purchase cloth and supply/finish uniforms attract Section 194C TDS was queried. One reply advised deduction of TDS with credit to the service provider via Form 16A; another reply stated no TDS on supply of uniforms and only VAT payable.