TDS on service charges

This query is : Resolved

Lee123 (Querist)
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16 April 2010 Hi all

I need to know on which amount tds is to be deducted, case is as follows:

A dyed fabric bill of Rs.13000, of which Rs.10000 is for the dyed fabric and Rs.3000 is for dyeing charges, both are seperated reflected in a single bill which totals to Rs.13000.

Kindly clarify with section. Thanks in advance

Rgs
Leelakrishnan M

CA Kapil B Gupta

CA Kapil B Gupta (Expert)
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16 April 2010 Both portion is showing seprately in invoice, so you have to deduct TDS only on INR 3000.00 for charges u/s 194C.

Please ensure if these charges are below thereshold limit during the financial year, do not deduct TDS.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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16 April 2010 If the fabric worth Rs.10,000/- is not supplied by you,the activity is not a 'work' as per explanation (iv)(e) of section 194C, no tax is to be deducted at source. This is the law w.e.f 01/10/2009.

kartik_somu

kartik_somu (Expert)
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16 April 2010 agree

VIKAS AGGARWAL

VIKAS AGGARWAL (Expert)
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16 April 2010 In my opinion as the material is purchased and with some spcified dyed work then there would not be any TDs on this payment as the changes done by Finanace act 2009 in the definition of work.

I furtherance to above in my opinion even on a small part of the bill attaract TDS we are liable to deduct tax on gross value of the bill including service tax also.

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