Tds u/s 194 j

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Er. Gian chand sharma (Querist)

08 January 2015 Work Orders are occasionally being placed to BHEL for maintenance of underwater parts or top covers etc. in old aged Hydro Power Station & TDS usually being made @10% as applicable as such all facilities & inputs are being provided to BHEL by the organisation/Deptt.But this time BHEL is imposing condition on similar nature Work Order(s) to make TDS @2%. .Since,proposed work is of proprietary nature & Deptt.has only option to get it through BHEL at this stage an apprehension from higher authority to insist D.D.O to make TDS @2% instead of @10%.Sir,please guide and advise that how D.D.O come off well with such situation.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 January 2015 You are placing work order for maintenance. It is in the nature of works contract only 2% TDS is applicable. You can agree with the request of BHEL. Other power generating companies are deducting only 2% on such maintenance works of BHEL.

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

08 January 2015 if falls in the defintion of wrks contract as per sec 194C hence 2% is applicable as tds rate.

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Er. Gian chand sharma

Er. Gian chand sharma (Querist)

08 January 2015 Sir,it is also essential to mention here that all the Facilities & Inputs to BHEL are being provided by the Deptt & there is no inclusion of supply of spares etc.BHEL is only deploying their techanical staff/skilled workmen at work site to get it repaired the parts of generating Unit.Even labour cess payble on the payment raised by the BHEL is also being born by the Deptt on the term of payment of BHEL.Under such condition,still,whether 194C is applicable or 194J ?Advise please.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

09 January 2015 It is not a technical/consultancy work where professionals are engaged for which 194J applicable. It is a maintenance work where technical staff/skilled workmen work at site for repair the parts of generating unit. Labour cess is also paid for this work. Irrespective of the fact the spares are not supplied by BHEL this is a contract for carrying out repair/maintenance work for which 194C only applicable.

Er. Gian chand sharma

Er. Gian chand sharma (Querist)

09 January 2015 Sir,
Finally ,I regret to ask one thing more on my query as above regarding 194C or 194J that BHEL is also claiming service tax @12.36% from the Deptt.for providing such services to carry out repair & maintenance work at site.
With due regards.
Author

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

09 January 2015 As no material is involved in the above work (labour contract) service tax is claimed at 12.36%.

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