Page 30 - GSTL_23rd April 2020_Vol 35_Part 4

J58 GST LAW TIMES [ Vol. 35
The relevant portion is submitted for reference.
“Explanation. - For the purposes of this section, -
(iv) ”work” shall include -
(a) advertising;
(b) broadcasting and telecasting including production of pro-
grammes for such broadcasting or telecasting;
(c) carriage of goods or passengers by any mode of transport
other than by railways;
(d) catering;
(e) manufacturing or supplying a product according to the re-
quirement or specification of a customer by using material
purchased from such customer,
but does not include manufacturing or supplying a product according to the
requirement or specification of a customer by using material purchased from
a person, other than such customer.”
6. Section 194C deals with the provisions for tax deduction at source at
the time of payment to contractors/sub-contractors.
The section says that any person who pays money to the resident con-
tractor (or sub-contractor) for carrying out any work (including the supply of
labour) is required to deduct tax on such payment. The above condition also re-
quires the existence of a contract between contractor and contractee.
7. “Work” definition includes manufacturing or supplying a product
according to the requirement or specification of a customer by using material
purchased from such customer.
However, it excludes manufacturing or supplying a product according
to the requirement or specification of a customer by using material purchased
from a person, other than such customer.
Recent budget changes also included the word, “Associate” (related), in
the definition and nothing else.
8. The persons required to deduct TDS u/s. 194C is as follows :
Any specified person making payment to a resident contractor for carry-
ing out work is required to deduct TDS.
Specified person here means :
• Central or State Government
• Local Authority
• Corporation
• Company
• Co-operative Society
• Trust
• University
• Registered Society
• Firm
• Individual/HUF/AOP/BOI required to get accounts audited u/s.
44AB(a) and (b)
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