Provisions of section 194C applies to work and not for purchase of material

Bharatpur Dugdha Utpadak Sahkari Sangh Ltd. Vs ITO (ITAT Jaipur) ITAT Jaipur held that the provision of section 194C of the Income Tax Act is applicable to work and not for purchase made which are liable for VAT. Hence, TDS u/s. 194C is not leviable as payments were made for purchase of material and not for any work contract. Facts- A TDS survey u/s. 133A(2A) of the Income-tax Act 1961 was conducted at the business premises of the assessee. During the course of the survey, it was found that the assessee/deductor M/s Bharatpur Dugdh Utpadak Sahakari Sangh Ltd. Bharatpur, has made the contract t...