purchase of furniture

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PRIYA (Querist)
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29 September 2008 I have made a office cabinet through contractor. His bill including labour charges and materials amounted to Rs.25000/-. I have debited this amount to furniture account. Should I deduct TDS before making payment? Will there be diallowance for non deduction?

Regards,
Priya

CMA Jitendra Singh

CMA Jitendra Singh (Expert)
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29 September 2008 Since your bill is composite of materials and labour charges ,TDS is applicable u/s 194C

If it was separate bill of materials and separate for labour than TDS was applicable on labour charges which may be nominal in your case.

vinod

vinod (Expert)
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29 September 2008 agreed with mr singh view

Ravikumar.G

Ravikumar.G (Expert)
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30 September 2008 amounts paid to a contractor or sub contractor for carrying out any work (including supply of labour for carrying out any work. Your case if it is a single bill TDS will attract.

Ravikumar.G

Ravikumar.G (Expert)
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30 September 2008 Failure to deduct the whole or any part of tax at source : Penalty u/s 271C will attract i.e sum equal to the amount of tax which he failed to deduct.

CA Bosu babu

CA Bosu babu (Expert)
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01 October 2008 hey you have to deduct TDS on bill...however
TDS will be on(BIll total amount-Materials amount-labour charges)....this will be final...if you hav still doubt see works contract theory...ok

Zeeshan

Zeeshan (Expert)
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01 October 2008 all of the above had told you about TDS deduction. and i am also agreed from there view about dedution and non deduction.
consequence: since you have purchased a fixed assets and didnot charge it to the profit and loss account hence it cannot be disallowed. only interest and panalty can be levied
solution: ask your carpenter to mark seprate charges for labour and material in the invoice.

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