TDS on Vehicle Repair & Maint.

This query is : Resolved

Quick Summary

Vehicle repair and maintenance is treated as a works contract under Section 194C, so TDS is applicable. However, if material and labour are separately shown in the bill, TDS is deducted only on labour charges and not on material cost as per amended provisions.

kamal

kamal (Querist)
Follow

27 October 2009 Dear All

I have a query that if we repair a car( vehicle) with sum of More then 20000.00 which include labour charges as well as cost the parts and we issued a single Job order agsint it.
But the Party issued a Bill which clearly shown the seprate calculation of labour and consumable.In that case TDS is to be deducted or Not.

as per my opining it covered under WCT and TDS will be deducted.

If Not please mention the Section also.
Thanks

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

27 October 2009 It is a works contract and hence TDS applicable.

Citation :- CBDT Circular 666 dated 08/10/1993, clause 5.3, reported in 204 ITR (St) 40.

But w.e.f 01/10/2009 as per post amended section 194C (3) tax need to be deducted only on the value excluding the value of material if such value is separately mentioned in the invoice.

Message likes : 6 times

Guest

Guest (Expert)

27 October 2009 Agreed!

Rajeev

Rajeev (Expert)
Follow

27 October 2009 only on labour charges , value of material to be excluded wef 1/10/09

kamal

kamal (Querist)
Follow

28 October 2009 Thanks a lot

PARAS CHHAJED

PARAS CHHAJED

(Expert)
Follow

20 September 2022 Material cost to be excluded only if the contract is for manufacture and not repairs. Please refer to explanation (sub-clause (e) of clause (iv) of Explanation. Also refer section 194C(3).

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now