Confusion on TDS Applicability

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Sapan (Querist)
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12 March 2021 Hi Everyone,

We have purchased machinery and as vendor issued invoices one by one i assumed that the machinery is inclusive of installation so i deducted TDS u/s 194C . Now later on they issued separate invoice for installation .

So what to do ?

Should I deduct TDS u/s 194C or 194J for installation invoice & that too on what rate ?
If I deduct TDS on installation then what to answer if they ask that why you deduct TDS on machinery invoices ?

Thanks in Advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 March 2021 Deduct TDS on installation charges under section 194c. No need to deduct TDS on supply of machinery.

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Sapan

Sapan (Querist)
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13 March 2021 Sir that's true. But as initially only machines were supplied so i deducted TDS that time considering machinery + installation. So now what justification i shud give regarding deduction of TDS on Machinery invoices as Installation Invoice raised lastly after machinery invoices .

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 March 2021 Some times it will be considered as works contract and TDS made for the whole amount. It's not a problem let him claim credit in filing ITR.

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Sapan

Sapan (Querist)
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13 March 2021 Thank you sir for your prompt reply for solution.

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