Amount on which TDS to be deducted

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sheetal (Querist)
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20 June 2009 If single Bill which consist of Part purchased cost & labour cost ,TDS to be deducted on Whole amount or only LAbour cost

CA.SHAHZAD SAYYED

CA.SHAHZAD SAYYED (Expert)
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20 June 2009 Dear Sheetal
TDS is required to be deducted only on Labour cost u/s 194C

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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20 June 2009 TDS is required on entire bill. It is advisable to have 2 separate bills in case if any reimbursement to be claimed.

taxindiaconnect

taxindiaconnect (Expert)
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20 June 2009 TDS is required to be deducted on the entire amount of the bills. Please refer to the folloaing clarification issued by CBDT on this matter in circular no715 dated 08/08/1995

Question 30 : Whether the deduction of tax at source under sections 194C and 194J has to be made out of the gross amount of the bill including reimbursements or excluding reimbursement for actual expenses ?

Answer : Sections 194C and 194J refer to any sum paid. Obviously, reimbursements cannot be deducted out of the bill amount for the purpose of tax deduction at source.

Since in your case the single bill is issued, TDS needs to be deducted from the entire bill.

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