Tds applicability on costruction material and labour payment

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shoghi (Querist)

14 December 2017 Sir, Can you please advise me that we have to deduct any TDS if the scenario is " We are a Limited Company and we have purchased Sand, Concrete, Bricks etc. from a Contractor for some Repair work of Building approx. for Rs. 85,000/- (in 4-5 Bills), and we have made payments directly to the labourers, No Contractor was involved, "

Thanks & Regards
Pradeep

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

14 December 2017 Incase contractor raise the bill on your for labour payment then you have to deduct the TDS on labour bills

shoghi

shoghi (Querist)

15 December 2017 Thanks Sir and what about purchase of Sand, concrete, bricks etc. either TDS applicable on purchase of these material or not if exceeds to Rs 75,000 in a year from same vendor

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

16 December 2017 Purchase of sand, concrete, bricks etc. will not attract TDS because these are purchase of materials, but the contract raised the combined bill with material as civil works then tds will apply on entire bill value

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