Tds u/s 194 c

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Querist : Anonymous

Querist : Anonymous (Querist)

03 June 2013 Hi..
I am directly coming to my query.
A company gives a work to a contractor to lay marble on their floor. Here, the problem is, contractor itself is supplying the materials(ie,marbles) and he does the laying work too.
Here my questions is whether company has to deduct TDS for the gross amount including the supply of goods or only for the contract work done by him under section 194 C.
Here bifurcation of supply value and contract value is available.

Thanks..

CA Kapil Verma

CA Kapil Verma (Expert)

03 June 2013 if invoice is raise separately that deduct TDS on Labour invoice.

But is the invoice is raised including material ,then deduct TDS on Gross.

CA.Vinita Gupta

CA.Vinita Gupta (Expert)

03 June 2013 Take separate Bills for Material and Labour Work. On material bills no TDS and on Labour Works TDS u/s 194C

Ganeshbabu K

Ganeshbabu K (Expert)

03 June 2013 Refer 194C subsecton 3

in this cases TDS can be deducted as follows,

(i) on the invoice value excluding the value of material, if such value is mentioned separately in the invoice; or
(ii) on the whole of the invoice value, if the value of material is not mentioned separately in the invoice.

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