tds

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reena boricha (Querist)

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)

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)

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)

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.

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