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tds on contract

Others 613 views 7 replies
Sir supply of spares and service raised in one invoice in which both suppy of material and supply of service is separately identifiable...whether tds to be deducted on labour portion only or tds to be deducted on the entire invoice value??
Replies (7)
@ Gnanam.,

Yes... TDS will be deductible on entire invoice value (basic value).


@ CS Aditi Pant.,

It's very bad...
It's not like a professional...

1. As per explanation (i) sec 194C(3) it is clarified that if the value of the material is separately specified in the invoice then TDS shall not be deducted on the material portion. 
2. This is for a simple reason that materials being part of the work will not contain profit portion or the revenue of the contractor. Even it does contain it is a sale of a product and sale of product will not come under the purview of TDS. 
3. Hence, TDS u/s 194C is to be deducted only on the labor portion which is the revenue for the contractor. 
Please correct me if the above solution has an alternative view. 

But nowadays it has become mandatory to get himself registered as Works Contractor.
Registration under Gst.
will be mzndatory if the contractor turnover exceeds Rs.1.5 crores.
@ Raja P M Could you please clarify your comment? And how did my post land here at the first place? This post was posted on CA IPCC category under Auditing sub-topic.
@ CS Aditi Pant.,

Here a person asking a query. Your post not related to the query. So, I said that above. Bcoz, Somebody doing the same without related posting to query...

why not You / they post the topic in new forums...?
@ Raja PM. I have already emailed support team of caclubindia.com to report this event. To me it looks like backend problem in database request. Might be possible that concurrent requests to database tables got messed up and the server glitched to assigned faulty key/id to my post that actually belonged to this thread. Anyway I have mailed the team to move my post to relevant section instead of displaying it here. BTW thanks for the comment and bringing this to my notice.
Originally posted by : CS Aditi Pant
@ Raja PM. I have already emailed support team of caclubindia.com to report this event. To me it looks like backend problem in database request. Might be possible that concurrent requests to database tables got messed up and the server glitched to assigned faulty key/id to my post that actually belonged to this thread. Anyway I have mailed the team to move my post to relevant section instead of displaying it here. BTW thanks for the comment and bringing this to my notice.

 

Ohhh Okay Okay...

I think it's posted by You as Somebody's same way. So Sorry if its hurting You...

 

GOOD LUCK...


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