« Top Headlines » Open DEMAT Account in 24 hrs  Income Tax Return Filing: 10 Mistakes To Avoid When Filing ITR For AY 2024-25  Old vs New Tax Regime: Who should move to the New Tax Regime from the old one?  Income Tax Calculator FY 2023-24: How To Know Your Tax Liability Online On IT Dept's Portal?  BackBack Income Tax Act amendment on cards on tax treatment of MSME dues  ITR-1, ITR-2, ITR-4 forms for FY 2023-24 available for e-filing. Check details here  Income tax slabs FY 2024-25: Experts share these 8 benefits for taxpayers in new income tax regime  How To File ITR Online - Step by Step Guide to Efile Income Tax Return, FY 2023-24 (AY 2024-25)  Old or new tax regime for TDS on salary? This post-election 2024 event will impact your tax planning  What Are 5 Heads Of Income Tax?  Income Tax Dept releases interim action plan for FY25 on tax collection, refund approvals   Income Tax Return: 5 lesser-known tax-saving tips from Section 80 «  Net direct tax collections up by 41 pc... Taxability of fees for technical services... » No TDS on sale deals, says CBDT December, 18th 2006 The Central Board of Direct Taxes has clarified that tax deducted at source (TDS) will only apply to deals which are in the nature of contract for work and not those involving sale transactions.    For example, an individual who has purchased a car and subsequently given a contract to another entity for customising the vehicle for some amount would be liable to deduct 2 per cent as TDS on that particular amount.    In effect, any value addition to goods already owned by an individual by another party will attract the tax.    A revenue department official said the circular removed ambiguities that had crept up due to two different circulars - 681 and 715. The critical point is at what point the person assumes ownership of the goods, he said.    Stretching the car analogy, he said, if a person contracted a customisation agency to purchase the car on his behalf and make value additions like changing tyres, adding accessories, etc, the transaction would not attract TDS.    This is because it will be treated as a contract for sale and not a contract for work, he said. The clarification, the official added, had widespread implications.    The provisions of Section 194C would apply in respect of a contract for supply of any article or things as per prescribed specifications in this regard, he said.