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Tds sec 194c

Ekta Sharma (audit cum accounts assistant) (27 Points)

09 May 2013

kindly tell me whether a person is required to deduct tds u/s 194C if he sends his trucks & lorries for repair & maintenance once in a while although he has no such contract with the service provider for undertaking the repair maintenance & servicing job for that person on a regular basis. Is that covered under contract for the section for the sec uses the words "in pursuance of contract". Hence in absence of any verbal or written contract will the limit of rs 30000/75000 as the case may be apply?

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5 Replies

(Guest)

yes liability to deduct will be arise depending upon the amount of payment made to contractor.

Deepak Sethi (Chartered Accountant in Practice) (219 Points)
Replied 09 May 2013

according to sec 194c of the IT Act, "the deduction of income tax will be made from sums paid for carrying out any work."

in other words, the section will apply in relation to works contracts.

thus, deduction will be required to be made if the consideration exceed rs. 30000 (single payment) or rs.75000 (aggregate during the year).

(Guest)

The provisions of section 194C shall apply to all types of contracts for carrying out any work including transport contracts, service contracts, advertisement contracts, broadcasting contracts, telecasting contracts, labour contracts, material contracts and works contracts.

Any work’ means any work and not a ‘works contract’, which has a special meaning.

Arunkumar Chartered Accountant (JOB) (27 Points)
Replied 22 July 2013

Dear Members,

I am working in manufacturing unit.I have four questions regarding tds matters.

1.Auto drivers (individuals) collects workers from different places to company. They charge certain amount per worker .they collect total amount at the end of month.they have pan no.whether we need to deduct tds u/s 194c. these charfes are not collecting from workers (free transportation)

2.freight charges made to lorry transport agency for collecting rawmaterial.they have quoted pan no on the consignment note.whether we need to deduct tds u/s 19c.

3.here one person supplies labour for packing waste material.they charge fixed amount per pack.whether we need to deduct tds u/s 194c .

4. here the people shifts the raw material from godown to machinary.rawmaterial is in the form of bales .they charge amount per bale basis.these people is loading finished goods in containers .they charge 1800 per container .whether we need to deduct tds u/s 194c.