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
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.
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.
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 http://www.incometaxindia.gov.in/acts/income%20tax%20act/194j.asp
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.
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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