TDS under section 194C not applicable on contract for sale: Bombay High Court
- Friday, March 12, 2010, 16:55
- Income Tax Case Laws
- Judiciary
The question whether contract manufacturing agreements are subject to s. 194C has been decided by the Bombay High Court in Glenmark Pharmaceuticals Ltd ITA No. 2256 of 2009 and other matters in favour of the assessees.
In an oral judgment pronounced today 12th March 2010, the Court held that while “works contracts” were subject to TDS under section 194C, “sales contracts” were not.
It upheld the arguments of the pharmaceutical companies that the contract manufacturing agreements entered into by them with other manufacturers amounted to a “sales contract” which was not liable to TDS u/s 194C.
Related posts:
- Contract for sale of goods will not be covered within ambit of section 194C of Income Tax Act, 1961
- Applicability of section 194C of IT Act, 1961 on contract for sale of goods
- Department filed appeal in high court against pharma companies not deducting TDS on contract manufacturing
- TDS Provision U/s. 194C applicable to association of persons and body of individuals
- TDS liability of a builder for sub-contracting of main contract is 1% u/s 194C
what is the state of works contract executed wherein transfer of the peropery to party agnst order for doing interior of the buying party on turnkey basis
would libale for 194C or not
refering this judgment
buyer has to dedcut tax or not under 194c if it si applicbale in bombay/maharastra or whole of india