TDS(Most Argent)

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Dharam Prakash Singh (Querist)

15 January 2011 Dear Experts,

There is a work order made to the contractor for a construction work worth of Rs. 1000000/=(ten Lac only). after geting the work order contractor has used company matarials of Rs. 200000/= which is esteemeted by billing engineer. My qustion is that what will be bill amount is applicable now for TDS as per rule Rs. 800000/= (Eight Lac) or Rs. 1000000/= (Ten Lac Only.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

15 January 2011 If the bill raised by the contracter separately for materials & labour then the material portion not attract TDS. If contractor raised combined bill then TDS apply on gross bill. so deduct TDS on gross bill or ask contractor raise the bill for Rs.200000 separatly

Dharam Prakash Singh

Dharam Prakash Singh (Querist)

15 January 2011 Sir my question is that the contractor is using company matarials which is not the part of work order.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

15 January 2011 Then TDS no need to deduct on material part issued by the contractee

Dharam Prakash Singh

Dharam Prakash Singh (Querist)

15 January 2011 if contractor has made the bill of full value and company has made a debit not against the same contract then what will be bill value Admissible.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

15 January 2011 It seems the material supply is in the scope of contractor,but supplied by the contractee and recovery made in the bill, in this case clear segregation in there for materials & other works. so TDS will attract only the value excluding materials

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