TDS ON ARCHITECT WITH LABOUR AND MATERIAL

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This discussion clarifies the applicability of Tax Deducted at Source (TDS) for payments made to an architect for office renovation, where the contract covers both labour and material. The advice suggests segregating the architect's professional service fees from the renovation work itself. TDS should be deducted under Section 194J for professional services and under Section 194C for the renovation work, especially if no specific design charges are included. It's also recommended to formalise the verbal contract in writing to avoid future complications.

Mahaveer Jain

Mahaveer Jain (Querist)
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20 July 2023 DEAR SIR
WE HAVE GIVEN CONTRACT TO ARCHITECT FOR OFFICE RENOVATION WITH LABOUR AND MATERIAL. (VERBAL CONTRACT, NOT WRITTEN).
PLEASE SUGGEST THE APPLICABILITY OF TDS IN THIS CASE.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 July 2023 Ask him to segregate bills for his professional services & the renovation work. Deduct TDS u/s. 194J & 194C IT act respectively.

Mahaveer Jain

Mahaveer Jain (Querist)
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20 July 2023 Sir
Architect provided bill as under:-
"Office Interior work (Furniture, Paint, Work) including labour and material".

Also we do not have any written contract with him.

please suggest..

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 July 2023 If there are no designing charges included in it, deduct TDS u/s. 194C IT act.

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Mahaveer Jain

Mahaveer Jain (Querist)
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20 July 2023 Thank you Sir..
also suggest..
We don't have any Written contract with him (only verbal contract).
If there will any adverse consequences of this.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 July 2023 Better to get contract signed/confirmed for the renovation work, to face any query in future.

Mahaveer Jain

Mahaveer Jain (Querist)
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20 July 2023 thank you so much sir

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 July 2023 You are welcome.

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