ON WHICH AMOUNT PARTY WILL DEDUCT TDS ON MY PAYMENT FOR PURCHASING MATERIAL & SELLING FINISHED GOODS

[Rajiv Sinha]

pls clear the latest amendment u/s 194c regarding tds on sale of goods (with effect from 01.10.2009) MY QUESTION IS,WE ARE PURCHASING MATERIAL FROM CUSTOMER AND SELLING TO HIM ONLY THE FINISHED GOODS.PLS CLEAR ME ON WHICH AMOUNT PARTY WILL DEDUCT TDS ON MY PAYMENT.

MOBILE NO-9811966217

[CAGOPALJI AGRAWAL]

Rajiv Ji, normally, TDS is not deducted on purchase of material except in the case of timbers, liquor etc. It seems that you are not delaing in these products.

[Guest]

WE ARE HIRING THE CRANE FOR LOADING/UNLOADING OF MATERIAL, PLS CLEAR THE RATE OF TDS TO BE DEDUCT.

AI Summary

TDS on purchase of goods: generally not deductible except for specified commodities; service or equipment hire payments may attract TDS. Whether withholding under the amended 194C applies turns on characterisation of the transaction as sale of goods or contract for work. Forum replies state that TDS is generally not deducted on purchase of materials except for certain commodities such as timber and liquor, while payments for services or hiring equipment (eg, crane for loading/unloading) may attract contractor TDS at the applicable rate.