TDS on Prining Charges-Consolidated Bill for Printing as well as for Materials

[Siraj Shaikh]

A Printier and a Stationery supplier supplies the Brochures to the Company. He uses his own Raw Material, like Papers and inks and carries out the printing jobs. And submits consolidated bill, i.e., no bufurcation between labour charges and the cost of raw material. He is an URD.

Whether Section 194C can be applied to this bill ????

[YAGAY andSUN]

Such kind of transaction comes under works contact tax and  194C is duly applicable.

[Siraj Shaikh]

Does it mean that TDS @ 2% u/s  194C plus tax under Works Contract Act.??????

[PAWAN KUMAR SHARMA]

If supplier charges, VAT on billing then what would be the treatment.

[manoj mahimkar]

In my opinion it will still attract TDS as VAT is also leviable on work contract

AI Summary

TDS on contract payments may apply where consolidated printing bills are treated as works contracts, even if VAT is charged. Payments to a printer supplying printed brochures using own materials and issuing a consolidated bill are characterised as works contracts; such consolidated contract payments are subject to withholding under Section 194C. The imposition of VAT or works contract tax on the billing does not by itself remove the obligation to deduct TDS on the contract payment.