TDS

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S.Siju Gemin (Querist)

10 March 2011 Dear Sir,

We had made custom made furniture through a carpenter. He has give a invoice stating Furniture-Table Rs.1 Lakh. He has not added any Tax.

Should I deduct TDS on contractors? If I have to deduct TDS on What Value, as labour and material is not seperated.

In my books I have accounted entire amount as Furniture.

Kindly help

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

10 March 2011 Writing in the bill as Custom Table- shows that you have purchased a table from him.
In this case no TDS is required to be deducted.
It will be better to get description of the furniture made by him including the table
and deduct TDS on full amount if material bills are not in your company's name.

Otherwise deduct TDS on labour charges only in case separate bills of material purchase are availed in your company's name.

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Rajan Kapoor

Rajan Kapoor (Expert)

10 March 2011 As stated by you, carpenter raised invoice stating Furniture-Table Rs. 1 Lakh. No TDS is required as it is not possible to identify the labour amount.

TDS is applicable on labour charges and not on material value.

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