TaxTMI 
TaxTMI 
sir
we have purchased two lakh sms for issuing in bulk from a company through quotation at a cost of Rs.31,500.00.
i would like to know whethere it attracts TDS under 194 C of income tax.
with regards,
chakravarthy s n
applicability of tds
03 May 2012 
2 Replies 
11389 Views Asked by
Guest 
TDS under contractor-withholding rules: purchase of bulk SMS treated as goods, so withholding obligation does not arise.
Withholding tax applies only where payment is made under a contract for carrying out work or supply of labour by a resident contractor; a purchase of goods (here, bulk SMS acquired by quotation) does not amount to such a contract, and therefore the contractor-withholding obligation does not arise. (AI Summary)
Withholding tax applies only where payment is made under a contract for carrying out work or supply of labour by a resident contractor; a purchase of goods (here, bulk SMS acquired by quotation) does not amount to such a contract, and therefore the contractor-withholding obligation does not arise. (AI Summary)