Tds applicability on truck body building

CA Siddharth Tyagi (Chartered Accountant) (24 Points)

01 April 2015  

We are in the business of transportation. We own trucks and we run them to transport various goods of various customers to various places.

Recently we purchased few trucks and we sent them to the body builder to build the bodies of the trucks.

We have received a consolidated bill from the Truck body builder with bifurcation into material and labour charges.

My query is regarding applicability of TDS provisions on payment to the body builder. If yes then under which section and what amount.

This amount which we will pay would be capitalised in the cost of the Truck or not ?