Repairs and maintenance where material is substantial

If parts of machinery is replaced which forms substantial part of invoice and service charges which are less. it will be classified under repairs and maintenance as per CAS 12 . But will it attract tds under 194c since it is classified under repairs and maintenance?or 194 c will kot attract since majority part is material
Replies (7)
Quick Summary
This discussion clarifies whether Tax Deducted at Source (TDS) under Section 194C applies to machinery repairs, particularly when a substantial portion of the invoice is for materials. The consensus is that even with significant material costs, if the transaction is classified as repairs and maintenance under CAS 12, TDS under 194C is generally applicable. This holds true even if materials and service charges are itemised separately on the invoice, with the entire transaction often being treated as a contract for repairs.

194C will be applicable
It will be treated as repairs and tds under 194C will be applicable.
What if materials and service charges are mentioned separately in invoice
Even if it is separately mentioned, the whole transactions is treated as repairs. so in my opinion tds should be deducted.
TDS should be charged as it is a contract work irrespective of seperate Invoices
TDS 194C to be deducted on service charges if it is separately mentioned in invoice and if not mentioned separately then whole invoice value
See if the part of the invoice which relates to service charges exceeds 30000

if yes, 194c shall apply

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