27 March 2012
Material A supplied by Harish Ltd to a sub contractor Ashok Ltd for welding activity. Material B is being purchased by Ashok Ltd from outsiders and material A and B are welded together. The same being send to Harish Ltd. Whether tax to be deducted at source on welding charge or also for material B under 194C.
01 April 2012
Its depend on the contractual obligation and if contract is for supply of material B & Labor charges and if only for labor charges then on only labor charges and he may claim material claim by a separate sale invoice.
CAclubindia
