TDS ON Automobile service provider

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This query is : Resolved

CA-ASPIRANT (Querist)

27 November 2009 Sir,

Pl let me know if a company gets its vehicles serviced and get a bill of Rs. 25000 for parts and services charges.

Should the company deduct TDS thereon or not.

Thank in Advance
Waiting for Answer

M Prabhakar Menon

M Prabhakar Menon (Expert)

27 November 2009 Is there a contractor as envisaged under Section 194C ? If yes u should deduct TDS

Murtaza I Bhagat

Murtaza I Bhagat (Expert)

29 November 2009 If Contract is giving to that Service Station in written then you have to Deduct tds on it. otherwise Paid the bills of full amount.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)

29 November 2009 If Contract is giving to that Service Station in written then you have to Deduct tds on it. otherwise Paid the bills of full amount.

CA-ASPIRANT

CA-ASPIRANT (Querist)

30 November 2009 There is no need to be written agreement.

CA-ASPIRANT

CA-ASPIRANT (Querist)

30 November 2009 help required

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

27 July 2025 Regarding **TDS on automobile service provider** (vehicle servicing including parts and labor):

### Key points:

* **Section 194C** applies to payments to contractors for carrying out any work (including supply of labor).
* Vehicle servicing generally qualifies as a "work" under section 194C.
* TDS @1% (for individual/HUF) or 2% (others) is to be deducted if payment exceeds ₹30,000 per contract or per transaction.
* No written contract is mandatory for TDS deduction if the payment is for services that qualify as contract work.
* If the payment is for **pure supply of goods (only parts, no labor)**, TDS under 194C is **not applicable**.
* If the payment includes **both parts and service (labor/repair work)**, entire amount is subject to TDS under 194C.

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### Practical takeaways:

* Check the bill: If it includes labor charges (service) along with parts, TDS deduction under 194C is required.
* TDS is to be deducted irrespective of any written contract.
* Threshold limit: If payment in a single transaction exceeds ₹30,000, deduct TDS.
* Deduct TDS on the entire amount (parts + service) if service is involved.

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If you want, I can help draft a TDS clause or give you sample calculations. Would you like that?

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