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)
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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)
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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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