tds

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reena boricha (Querist)
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09 May 2009 whether tax deducted from material testing fees & what's the percentage? the party who do both the work labour work & material testing work , how to apply tds provision here. only 194c apply or 194c & 194j both apply separetly.party issue separete bill then how tds will apply.

CA MEENAKSHI MANGLA

CA MEENAKSHI MANGLA (Expert)
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09 May 2009 it is like a quality control work, it fall in profesional so tds will be deducted u/s 194J @10.30%

Vivek Gupta

Vivek Gupta (Expert)
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09 May 2009 Hi...

11.33% of the bill amount inclusive of service taxes (if billed), is the TDS for the testing services.

hope this resolves your query

taxindiaconnect

taxindiaconnect (Expert)
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09 May 2009 As per circular no 720 of CBDT date 20.08.1995, a transaction which is covered under one section for tax deduction will not be covered under another section. so both the sections can not apply to a single transaction. in the given query if the bill is only for testing the material, it will be a technical service within the meaning of explnation 2 to section 9(vii) and TDS would be required to be deducted @ 10%+ Applicable SC and EC. If the contract is for supply of tested material, it will be a works contract and TDS @ 2.66% + Applicable SC And EC would be applicable.