Case Law Details
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 judgement 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.
Full Text of the case is as follows :-
HIGH COURT OF BOMBAY
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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