Tds on cctv installation

This query is : Resolved

Quick Summary

TDS on CCTV installation applies mainly on service or installation charges, not on material. Generally covered under section 194C. If invoice is combined, TDS may apply on total excluding service tax unless bifurcated.

sachin bedekar

sachin bedekar (Querist)
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11 August 2014 We have to install CCTV in our company for that we are paying 30% advance through proforma invoice.In proforma invoice vendor has included material & labour job both so TDS to be deducted on whole value or on installation portion and @ under which section 94 C or 94 J

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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11 August 2014 TDS to be deducted on installation charges only u/s 194C subject to threshold limit.

CA UMESH DULAL

CA UMESH DULAL (Expert)
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11 August 2014 on entire amount, for other point follow the suggestion of expert sanjay.

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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11 August 2014 Please Check Below Poins

1.We need to deduct TDS on Advance Payment.
2.Since Its amt to Works Contract as Material & Service Both Included
3. Deduct TDS u/s 194C on Total Amount Excluding Service Tax if applicable.
4. If possible, you bifurcate the amt of material & service, then on only service part TDS is applicable u/s 194J under Technical service.

Regards,
CA Ayush Agrawal

Rupesh Jain

Rupesh Jain (Expert)
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11 August 2014 installation charges cover under u/.s 194C you can take the separate invoice for the installation charges of camera . it is easy for you.

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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11 August 2014 Where only Service Invoice is given, in My Opinion 194J will be applicable as per explanation 2 to clause 7 subsection 1 of section 9.

But where Material+Service Invoice given, 194C applicable.
Read the following link in detail
https://www.incometaxindia.gov.in/acts/income%20tax%20act/194j.asp

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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11 August 2014 Here it is a simple case of CCTV purchase and installation. How can TDS be deducted on Puchase of CCTV? TDS should be deducted only on installation charges.

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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11 August 2014 Yes, tds is to be deducted only on charges not on purchase

CA Aditya

CA Aditya (Expert)
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12 August 2014 In CCTC Instalation 90% of works involve material part i.e camera, cables etc.. remaining 10% towards service charges...

Based on the invoice copy provided you have to deduct TDS. Generally vendors charge VAT on material and service tax on instalation charges ....so u need to deduct the TDS only on the service tax chargedd amount

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