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Tds u/s 194c for maintainance contract along with comsumable

TDS / TCS 1456 views 5 replies

   


 

Tds maintainance contract charges with parts and consumable


OUR CLIENT HAVE MADE A CONTRACT WITH ABC LTD MAINTAINANCE OF PLANT. ABC LTD GIVES THE BILL IN FOLLOWING FORMAT.

CONTRACT CHARGES------------------362653
SERVIVE TAX @ 12.36% ---------------44825
VAT @ 5% ON 80% ON TOTAL CHARGES---14506
TOTAL BILL AMT--------------------421983

WHETHER TDS WILL BE DECUCTED ON THIS BILL OR NOT ? IF YES THEN ON WHICH AMOUNT.

PLEASE QUOTE RELEVANT PROVISION, CIRCULARS WITH YOUE ANS.

 

Replies (5)

Yes TDS will be duducted under section 194C on total amount of bill.

 

Agree With Sunny... TDS will be Deduct on Total bill amount i.e. 421983/-

Originally posted by : SUNNY AGGARWAL

Yes TDS will be duducted under section 194C on total amount of bill.

 

TDS would be made on the whole of the bill amount i.e.421983.  The provision of 194C says that 'Any Sums paid'.  so whole of the bill amount would be considered for TDS.

Dear ,

Question 29 : Whether a maintenance  contract  including supply of spares would be covered under section 194C or 194J of the Act ?

Answer : Routine, normal  maintenance  contracts  which include supply of spares will be covered under section 194C. However, where technical services are rendered, the provision of section 194J will apply in regard to tax deduction at source

 

Refer link ....

https://182.18.182.2:8088/cbdtforprsite/fileopencontainer.aspx?Page=GLOBAL&id=1995080800071510&path=\Circulars\CBDTLaws\HTMLFiles\sec194C_715_95.htm&SearchWord=tds%7e0%24%24tdses%7e0%24%24routine%7e1%24%24routines%7e1%24%24normal%7e2%24%24normals%7e2%24%24maintenance%7e3%24%24maintenances%7e3%24%24contract%7e4%24%24contracts%7e4

 


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