tds on contract

[Guest]

i have purchase the film to show in my multiplex. in this case tds on contract is applicable or not.if TDS is not applicable than sent any related case law.

[CA Rachit Agarwal]

If the film is in CD, then it is contract of Goods and not services.

Refere the case of ACC Cement Limited.

AI Summary

Contract classification determines TDS applicability: sale of a film on CD is treated as goods not services, altering withholding. Acquisition of a film on physical CD for exhibition in a multiplex is classified as a sale of goods and not as a contract for services, and the reply cites ACC Cement Limited to support that such transactions fall outside the TDS provisions applicable to service contracts.