Tax deduction
This query is : Resolved
Meenu Agarwal
(Querist)
02 July 2012
Can tax be deducted on purchase of Fixed assets? Does it require any type of contract with the vendor?
CA CS Amit S. Kedia
(Expert)
02 July 2012
Tax is not deducted on purchase of fixed assets except software.
Meenu Agarwal
(Querist)
02 July 2012
And, if a company has a contract with a vendor then whether the co. should deduct tax @2%.
CA RICHA BADALIA
(Expert)
02 July 2012
As such no TDS is deducted on purchase of fixed asset.But if you have contract with vendor and you are paying labour charges for the same then TDS is deducted u/s 194 C on it ,if the limit is exceeded.
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Meenu Agarwal
(Querist)
02 July 2012
Whether the labour charges will include the delivery charges?
CA CS Amit S. Kedia
(Expert)
03 July 2012
Certainly not..
Generally Labour charges at the time of purchasing the fixed assets form part of fixed assets.
It is included in the cost of the Fixed assets and TDS will not be deducte on any of the amount and entire amount is debited to the cost of the fixed assets.
Generally Labour charges at the time of purchasing the fixed assets form part of fixed assets.
It is included in the cost of the Fixed assets and TDS will not be deducte on any of the amount and entire amount is debited to the cost of the fixed assets.
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