Clarification nedded on section 194C

Friends one more doubt,

In case of professional fee is it Liable to deduct Tax  on the out of pocket expenses reimbursed

Again, expalain in detail

Dear Shibin,

If on (same) invoice charges of material & labour are separately mentioned then TDS is to be deducted on the labour charges only otherwise TDS shall be deducted on the entire value...Sec 194C(3)

REGARDING REIMBURSEMENT OF EXPENSES, YES TDS IS TO BE DEDUCTED ON AMOUNT INCLUDING REIMBURSEMENTS.....CIRCULAR NO. 715 ISSUED IN 1995

TDS deductible on reimbursement of expenses also u/s 194J

No TDs on sale and purchase

Professional charges TDs applicable under sec 194J

Dear Shibin

Your 1st Question

If you have a contract to a party ie. of material+labour , then 2 points is there. (A) Whether Material & labour are shown seprately in the invoce  OR (B) inseprable .  Then in (A) you have to deduct WCT and in case (B) you have to deduct TDS on labour amount.

Your 2nd Question

In case of professional fees, if  "Out of Pocket Expenses" shown seprately in in bill , then  no TDS on such expenses AND if included in the bill amount the deduct TDS.

Hope you have no doubt.

if labour and material cost mentioned separately in bill then tds on labour part only and if this is not the case then on total amt of the bill

i agee wid amir...............

 I think Mr. Pramod is right...