TDS 194C

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This query is : Resolved

Ritin Kharbanda (Querist)

19 September 2009 If the invoice for car repair amounts rs.25000/- which includes spare parts Rs.18000/- and labour charges Rs.7000/-.

Is there any liablility to deduct TDS in this case under section 194C?

Thanx & Regards

Ritin Kharbanda

Ritin Kharbanda

Ritin Kharbanda (Querist)

19 September 2009 pls reply ASAP

its very urgent

Thanx

Ritin Kharbanda

Ritin Kharbanda (Querist)

19 September 2009 ..

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)

19 September 2009 If the invoice shows seperately spare parts and vat on the same and also labour charges seperately and service tax on the same then you need not deduct tds. If it is combined bill without mentioning vat then you have to deduct tds.

Ratan Sharma

Ratan Sharma (Expert)

19 September 2009 Agree with expert. Just want to add that even if VAT is levied in the bill even then liable for TDS as VAT is also applicable on works contract.

Rajeev

Rajeev (Expert)

20 September 2009 From October 1, 2009, the expression "work"(for work contract u/s 194C) also includes Contractor manufacturing:
This is defined as manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer, but does not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer
If the invoice mentions value of material separately then such value will be excluded for calculation of TDS, in all other cases TDS will apply to total invoice value.