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TDS on interior decoration

This query is : Resolved 

04 February 2011 Is the TDS under KVAT Act applicable on Interior decoration undertaken in a Pvt Industry in Karnataka

04 February 2011 Payment to an architect for interior design & decoration charges is sbuject to TDS @ 10 % under section 194J.

04 February 2011 Thanks Mr.Subhash kumar. My query was VAT related and not IT related

27 July 2025 Ah, got it! Your question is about **TDS under the Karnataka VAT Act** on interior decoration — not Income Tax.

To clarify:

* Under **Karnataka VAT Act**, TDS provisions apply on certain payments like **contractor services**.
* **Interior decoration services** can be treated as **works contract** or **service**, depending on nature.
* If considered as **works contract**, TDS under KVAT Act @ some % (usually 1% or 2%, depending on turnover) **may apply**.
* But if it’s purely **professional service** (like architect’s fees), then **KVAT TDS might not be applicable**, only IT TDS under 194J applies.

Since VAT and TDS under VAT Act are state-specific and can vary, best practice is to check:

* Whether the interior decoration falls under **works contract** as per Karnataka VAT rules.
* The **KVAT TDS rate** notified for such contracts.


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