TDS U/S 194C

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vikas kumar (Querist)
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15 October 2010 A Building Contractor enter into a contract for the erection of building for rs. 5 lakh. as per the contract all the material provided by contractor himself. for the same Tds Should be deducted or not ??? reply for the same with decided cases if u have ????????

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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15 October 2010 For material potion no need to deduct the TDS, other than material potion TDS will apply, Incase the billing not done as separate material and labour, the TDS will apply gross value ( including materials)

vikas kumar

vikas kumar (Querist)
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15 October 2010 Definition of Work u/s 194C clarified- as par budget 2009
TDS on outsourcing contract
1 Excluded where product made under specification of customer – raw material
purchased from other person
 However, Included Contract where raw material is supplied by customer
 Value for TDS- In case invoice separately reflects raw material value – TDS on
amount excl Raw Material Value
otherwise TDS on Full Invoice Amount.
my doubt is upon 1 point above . as per me all material provided by contractor himself.. sir can u dispel this doubt

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