« Top Headlines » Open DEMAT Account in 24 hrs   How to check income tax return (ITR) status  Income tax rules: How much cash can you receive in one day to avoid an I-T notice?  Tax saving tips: How you can reduce tax burden under the new regime  Condonation of delay under section 119(20) of the Income-tax Act, 1961 in filing of Form No. 9A/10/108/10BB for Assessment Year 2018-19 and subsequent assessment years  Condonation of delay under section 119(2)(b) of the Income-tax Act, 1961 in filing of Form No. 10-IC or Form No. 10-ID for Assessment Years 2020-21, 2021-22 and 2022-23  New GST form notified to help taxpayers adjust tax demand amount: Here's how to use  ITR filing deadline extended to November 15, 2024 for these taxpayers «  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.