Hai !All
Wn any company enter in contract with a person for purchase of material(which is used for house cleaning purpose), whether TDS Provisions aplicable or not?
CA Raghavender (CHARTERED ACCOUNTANT) (305 Points)
10 July 2009Hai !All
Wn any company enter in contract with a person for purchase of material(which is used for house cleaning purpose), whether TDS Provisions aplicable or not?
RITESH KOTHARI
(B.COM, FCA, DISA(ICAI))
(778 Points)
Replied 10 July 2009
TDS PROVISION WILL BE APPLICABLE AS YOU ARE NOT CAPITALISING THAT EXPENSE.YOU WILL TREAT IT AS YOUR INDIRECT/DIRECT EXPENDITURE IN P&L A/C.THUS U/s 194C TDS WILL BE DEDUCTED @ 2%+SURCHARGE (IF APPLICABLE)+ CESS
RAJU
(LEARNER)
(1089 Points)
Replied 10 July 2009
Provisions of Section 194C are not applicable for supply of materials.
CA Raghavender
(CHARTERED ACCOUNTANT)
(305 Points)
Replied 10 July 2009
Thanks Tinku fr ur reply
ok I agree with you but
It is contract for supply of material, so that I hv doubt it may be TDS applicable..seeking fr anothers openion
ca tarun sharma
(SERVICE)
(277 Points)
Replied 10 July 2009
tds is required to be deducted in case of contract of providing any specified services and not for supply of any material, goods or capital assets like building, land therefore tds is not required to be deducted
Yadab
(CA Student)
(26 Points)
Replied 10 July 2009
If company have only purchasing a material and does not levy service tax in the bill thn it's simply transaction of purchase and sale, thus no need to deduction of TDS on that ok.
But in other case, bill contains service tax and amount is exceed to Rs.20000/- thn you should to deduct TDS @ 2.060%.
CA Raghavender
(CHARTERED ACCOUNTANT)
(305 Points)
Replied 10 July 2009
thanks for expresing your opinions...........I got some awareness in this descussion
CAclubindia
