Tds on car service

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This query is : Resolved

Rahul (Querist)

08 January 2015 A company gives it Car for servicing to a party on regular intervals. The Party does servicing along with Service Tax and it also replace parts if requires and charge Vat for that. The Party gives a consolidated Bill for both components(Service Charges and Parts) and both Components can be easily BIFURCATED (mention Labour charges & part charges seperately in one bill) in the Invoice. My query is whether TDS is applicable u/s 194C or not?

Mohit Singla

Mohit Singla (Expert)

08 January 2015 yes TDS is applicable on this because its comes under works contract as per section 194C.
TDS shall be deducted on service value only.
If bifurcation is not given about the goods and service value
then TDS would be charged on total bill value

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Rahul

Rahul (Querist)

08 January 2015 thank you sir.
Can you please provide notification no. for that

Mohit Singla

Mohit Singla (Expert)

08 January 2015 there is no specific notification for the same
You can refer section 194C
It is specifically mention in the explanations provided in the section

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