Wct tds on flex, banners etc.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 August 2013 Is deduction of TDS on Work Contracts (WCT TDS Rate) liable on printing and mounting of Flex, Banners etc., having single contract of work and labour?

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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25 August 2013 TDS can be made on any works contract.If in your case you raise seperate bills for the value of flex board an then another bill for labour charge of erecting in a place tds can be avoided..mjk

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Ganeshbabu K

Ganeshbabu K (Expert)
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25 August 2013 As per Sec.194C Subsection 3,

Where any sum is paid or credited for carrying out any work mentioned in sub-clause (e) of clause (iv) of the Explanation, tax shall be deducted at source—

(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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Querist : Anonymous

Querist : Anonymous (Querist)

25 August 2013 Further, can we deduct WCT @4% on Flex, Banner etc. providers??

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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03 August 2025 Regarding TDS (WCT) on Flex, Banners, etc. — here’s the breakdown:
Applicability of WCT TDS on flex/banner printing and mounting:
Works contract tax applies when there is a contract for carrying out any work that involves both labour and material.
If the contract is composite (material + labour bundled in one bill), TDS should be deducted on the full invoice value.
If the bills show separate charges for materials and labour, then TDS is deducted only on the labour/service portion (the “work” portion), excluding materials.
Rate of WCT TDS:
The rate varies by state and contract type.
You mentioned 4% WCT — some states have rates around 2% to 5%, but 4% is possible depending on the state’s VAT/WCT laws.
Confirm the applicable rate for your specific state.
Practical approach:
If possible, request separate billing for material and labour from the contractor to reduce TDS liability.
If separate bills are not issued, deduct TDS on full invoice value as per Section 194C(3).
Summary:
TDS applies on flex/banner contracts if it qualifies as a works contract.
Deduct on labour portion if materials are billed separately; otherwise, on the total amount.
WCT rate can be around 4% depending on state law — verify exact rate applicable.

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