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.
chakravarthy s n
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Dear Sir ,
In accordance with the provisons of section 194C , any person responsible for paying any sum to any residentcontracotr for carrying out any work (includinf supply of labour for carrying out any work ) under a contract in pursuance of a contrat between contractor and pesons specified in explanation to section 194C , shall deduct income tax at the time of such payment thereof . Hence for the application of section 194C there should be a contract for carrying out any work . The provisions of section 194C are not applicabel on the purhcases . In tis case the quariest has made the purchases of Buld SMS . It is not a contract for carrying out any work . Hence no TDS is required to be deducted u/s 194C.
As per the provision of section 194C any person responsible for paying any sum to any resident contractor
for carrying out any work (including spply of labour) under a contract in pursuance to a contract between contractor and the person specified under explanation to section 194C , shall dedcut tax at source at the time of such payment thereof -----. Hence there must be a contract between the parties for the carrying out any work inculding supply of labour . In the case of the quariest has purchased the goods . Hence provisions of section 194C are not applicable