TDS Application

[Janeesh TG]

Sir,

I receive a invoice for printing diary ( for sending to my customers as a gift) from a Press, my question is that , i will pay the amount under which head of expenses ? and is it applicable for Tds?

Regards

Janeesh

[ALOKE GHOSH]

Dear Janeesh,

The head of accounts has no relation in respect to applicability of section 194C and accordingly the same is not material. What is material is that whether the transaction covers under section 194C or not. My reply in this aspect is that it is not covered under section 194C & you have no liability to deduct tax against the said bill since the same is merely a purchase.

Thanks

Aloke 

[NANDKUMAR SAGWEKAR]

You have purchase the stationery item this is purely purchase of goods and not covered under the provisions of TDS under Income Tax.

 

AI Summary

TDS applicability on goods purchase: printing diary invoice treated as purchase and not liable for TDS under section 194C.
The invoice for printed diaries supplied as gifts is a purchase of goods, not a contract for work or services, and therefore does not attract withholding obligations under section 194C; the expense account head is irrelevant to TDS liability.