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.
Ram Avtar Singh
(Expert)
06 May 2010
Its you Vehicle cost should be capitalised. TDS not Applicable on That part.
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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.
CMA Ramesh Krishnan
(Expert)
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
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