Tds on which amount - 194c

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2012 Please give guidance on following:-

My company paid Rs. 100000/- for repairing of machinery, breakup of bill is as follows
- Labour charges 20000
- spare parts 80000
total 100000/-

On which amount should we deduct TDS ,i.e., Rs. 100000/- or only labour charges of Rs. 20000/-.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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20 September 2012 Is you paid it as contract charges or repairing charges to machinery. I.e you gave work contract for certain fee what may be actual cost to the contractor then it is called contract. So first clarify and decide is it contract then TDS required on total amount if you gave material& Labour contract. In case you gave only Labour contract then not required to TDS because 194C limit not exceeded.

OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2012 We have paid it as only machinery repairing charges (not under any contract). I know limit is not exceeded for TDS purpose, but in case payments towards labor charges is more than limits specified say Rs. 40000/- for labor than on which amount should we deduct TDS ,i.e, total bill amount or only labor charges.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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20 September 2012 Even though it is labour charges if the transaction not related to contract then TDS not applicable if the payment exceeds the 194C limit. However for some of the reasons payment of labour charges may be consider as contract payment. So for your case contract payment i.e labour charges not exceeded the limit specified in section 194C and spare parts doesn't comes under contract it is just purchase so TDS not required.

OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2012 Thank you for reply.

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