WHETHER TDS SHOULD BE DEDUCTED U/S 194C OR 194J?

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KINGSHUK DHAR (Querist)
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19 July 2011 Hi all,

Our company has placed an order for making of a model of our factory project in the ratio 1:100 as per designs provided by us. The total cost of making of such model is Rs. 62,000. Now the question is whether we need to deduct TDS u/s 194J or 194C on part payments to be made to the maker of such model. Pl. note that we are not providing any material to the person for the purpose.

Pl. advice.

Thanks
Kingshuk

CA Navin Jain

CA Navin Jain (Expert)
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19 July 2011 IF THE MODEL HA CONSIST THE BOTH MATERIAL AND LABOUR THEN DEDUCT TDS UNDER SEC 194C

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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19 July 2011 Section 194C will not attract since the work is done with materials using material purchased otherwise than from your company. Pl refer definition of 'work' given in clause (iv) of explanation to section 194C.
However, data given is insufficient to comment on the applicability of section 194J.

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