tds on contracts

[Gopi Krishna]

Dear friends,

I would like to know whether tds provisions u/s 194C can be applied to a "supply" contract wherein the supplier undertakes to deliver plant and machinery to the purchaser as per the technical requirements and specifications of the purchaser and this process involves discussions,deliberations and confirmations of both the parties. In a nutshell this contract is classified as " Design,engineering,manufacture and supply contract" I am of the view that the "transfer of chattel" theory is favourable to the purchaser.

[pawansingla]

Your presumption is correct. It is contract of sale and purchase and not works contract.