Matter of income tax

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Guest

Guest (Querist)

30 August 2011 good evening to all expert ,
plz reply of my these query
1-I rec two bill of genrator repairing charges.which amt. is 47000 and 16000 .but sir in first bill contrator show 42000 amt. matrial charges( which he used in genrator repairing) and 5000 amt is service charges( labour charges)and seconad bill contrator show material charges bill is 14000 and 2000 show in. service charges( labour charges).. than sir i want to ask u only that in which amt. i will deduct tds.. plz sir i requested u plz sir.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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30 August 2011 In case the bill clearly mentioned the material and service charges then you can deduct only service charges as mentioned in 194C

According to section 194C subsection 3 provides the following

(3) Where any sum is paid or credited for carrying out any work mentioned in sub-clause (e) of clause (iv) of the Explanation, tax shall be deducted at source—

(i) on the invoice value excluding the value of material, if such value is mentioned separately in the invoice; or

(ii) on the whole of the invoice value, if the value of material is not mentioned separately in the invoice.

Guest

Guest (Querist)

30 August 2011 thanks sir
means i will deduct tds only labour charges. not material charges. but sir in low amt. will i deduct tds on labour charges.while single pmt. is 30000. and this bill is low amount.of service charges

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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30 August 2011 yes. you can consider the threshold limit. you can wait up to cross the limit

Guest

Guest (Querist)

31 August 2011 thank sir can u tell me abt wct

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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31 August 2011 what details required in WCT

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