Tds rates u/s194c

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 April 2015 Hello Sir / Madam

we are making payment for furniture work as windows , door fitting work and we have not provided any material to them.

hence my query is that should we deduct TDS from this payment ? Total invoice amt includes Material and labour charges separately.

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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27 April 2015 yes u must deduct TDS u/s 194 c if the amount crosses the threshold limits

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 April 2015 TDS applicable on total invoice value at 1% if contractor is individual at 2% for others.

Querist : Anonymous

Querist : Anonymous (Querist)

27 April 2015 i think this work comes under contract of sale hence no TDS and if Invoice includes material and labour value seperately then why we deduct tds on whole invoice value ? please clear me

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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27 April 2015 It is advisable to have separate bills of both.. so as to avoid tds on whole ...

but labour part is there which attract tds...

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 April 2015 The contractor buys the raw wood and makes furniture according to your requirement and the bill includes material and labour so it can't considered as supply of material. So TDS applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

27 April 2015 Thanks Sir,

also pls confirm one more thing,

Work started In Feb 15 and till March 15 we have made two payment of Rs. 30000/- each which does not cross limit of Rs. 75,000/-in aggregate and single payment more than Rs. 30000/- so we do not required to Deduct TDS in FY 2014-15 .

This year crosses this limit.

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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27 April 2015 yes u need not to deduct tds if it doesnt crosses limit in preceding financial year....

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