TDS on purchase order
This query is : Resolved
06 May 2010
My company has purchased chasis for Bus and then order a garage to make body of bus on that chasis.
Garage has charged VAT on full bill value.
Whether TDS provision attracted or not.
Garage has charged VAT on full bill value.
Whether TDS provision attracted or not.
06 May 2010
Its you Vehicle cost should be capitalised. TDS not Applicable on That part.
Message likes :
1 times
06 May 2010
TDS will be charged on payment or credit to party whichever is earlier.
No TDS is to be deducted on issue of purchase order.
In this case, he charging with you for material plus labour charge.
If he is showing labour charges seprately, then tds will be charged only on labour exp, otherwise tds will be dedcuted on whole amount of bill u/s 194 C.
Other Expert's views are solicited.
No TDS is to be deducted on issue of purchase order.
In this case, he charging with you for material plus labour charge.
If he is showing labour charges seprately, then tds will be charged only on labour exp, otherwise tds will be dedcuted on whole amount of bill u/s 194 C.
Other Expert's views are solicited.
Message likes :
1 times
06 May 2010
Dear Ram Avtar Ji,
TDS charged or not , is not depend the nature of expenditure.
In case of construction of building, all cost will be capitalized but tds is deducted. there are so many example for it.
TDS charged or not , is not depend the nature of expenditure.
In case of construction of building, all cost will be capitalized but tds is deducted. there are so many example for it.
07 May 2010
Thanks for your replies sir but I am still confused, because in bill Garage has not mention material and labour cost separately
As per Section 194C wef 1st October 2009 the expression "work" shall include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer. However, it will not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person other than such customer.
As per Section 194C wef 1st October 2009 the expression "work" shall include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer. However, it will not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person other than such customer.
07 May 2010
It is purely purchse transaction, if you are supply the material for manufacturing the chasis as per your requirement it will cover under the word "work" but it is pure purchase transaction so TDS will not applicable.
Incase the supplier also doing the installation works the particular chasis in the bus the portion of installation work will attract tds u/s194C
otherwise no TDS applicable on your purchase
Incase the supplier also doing the installation works the particular chasis in the bus the portion of installation work will attract tds u/s194C
otherwise no TDS applicable on your purchase
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CLOSING STOCK QUERY
- Exiting partner in partnership firm in gst portal
- TDS on rent received on hardship compensation being rent on redevelopment of building
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- Missed TDS
- IT returns for fresh job holders
- F&O reporting in ITR
- CASH GIFT FROM BLOOD RELATIVE
- TDS offline utility
- Due Date Clarity
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
