supervision charges for Crane

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Guest

Guest (Querist)

16 March 2011 One invoice for Rs.24000/- is for the supervision charges of erection & commissioning of EOT Crane is with me.

If I took the same under 194J the TDS will not be applicable as it is less than Rs.30,000/- limit.

If I took the same under 194C the TDS is applicable @ 2% (for clarification party had already been paid Rs.10 Lacs for service covered under 194C during the year).

I am confused as whether the same will come under 194C or 194J.

-----Anil Verma

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

16 March 2011 Your confusion can be solved for just less than Rs 500/- and luckily the sum will be not of yours.

Deduct TDS under the same head of contract U/s 194C.

No body can question you for 194J, as the amount is below Rs 30000/-.

Guest

Guest (Querist)

16 March 2011 Mr. Bafna, Thankyou for your valuable comment.
I could have deducted the TDS @2% but I had to put this question because in this month end we are going to award a new contract to this party for same nature of work which will cost more than Rs.5 Lakhs.
If I will deduct the TDS under 194 C than what will be my action at the time contractor will claim for new contract.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

17 March 2011 If the payment is likely to exceed under the head on which TDS is deductible U/s 194J then either you should deduct TDS @ 10% or do not deduct tax at all. In the next bill you have to cover this invoice also.

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