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Is TDS applicable on payment to Ready Mix Concrete supplier

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rakesh

student

249 Points Posted on 15 July 2023

Is TDS applicable on payment to Ready Mix Concrete supplier

Replies (2)

Quick Summary

Generally, Tax Deducted at Source (TDS) under Section 194C is not applicable on payments to Ready Mix Concrete (RMC) suppliers as it's considered a sale of goods. However, if the contract includes separate charges for pumping or placing the concrete at site, that service element might attract TDS. Section 194Q could apply if your annual purchases from the vendor exceed Rs 50 lakh and your turnover is over Rs 10 crore. Remember to also consider the applicable 18% GST on RMC.

sabyasachi mukherjee

Profession

19978 Points Posted on 19 July 2023

Depending on the quantum of contract value.

Aashok Kumar Sharma

Finance/Compliance Consultant

77903 Points Posted on 07 November 2026

Usually no 194C. It's a purchase of goods:

• Ready-mix concrete supplied by the vendor using its own materials is a sale of goods. Sec 194C's definition of "work" excludes manufacturing or supplying a product per the customer's specification using materials bought from someone other than the customer (Explanation (iv)). So no 194C.

• If RMC is supplied with pumping or placing at site under a contract, the service element (if billed separately) may attract 194C.

• 194Q (0.1%) applies if your turnover exceeded Rs 10 crore and purchases from that vendor exceed Rs 50 lakh in the year.

• GST: RMC (HSN 3824 50 10) at 18%.