purchase of furniture

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PRIYA (Querist)

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)

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)

29 September 2008 agreed with mr singh view

Ravikumar.G

Ravikumar.G (Expert)

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)

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)

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)

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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