TDS ON Automobile service provider

This query is : Resolved

CA-ASPIRANT (Querist)
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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
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M Prabhakar Menon

M Prabhakar Menon (Expert)
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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)
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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)
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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)
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30 November 2009 There is no need to be written agreement.

CA-ASPIRANT

CA-ASPIRANT (Querist)
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30 November 2009 help required

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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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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