Please do the needful on below:
Supply of machinery including Erection & commissioning / Installation. (mentioned in PO terms)
But PO raised only for supply (as material PO)
Now we are paying advance of Rs.30 lakhs to vendor..
What is your opinion on applicability of TDS??
Please give some reference if possible..
Thanks
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TDS Applicability
Replies (7)
You need to cut 2% TDS(other than an individual) on Erection & commissioning / Installation under section 194C.
Not on Machinery since machinery is a fixed asset.
Hope it helps you.
No separate values mentioned for the same on PO or in Proforma received from vendor...
In PO under scope of work it mention as Erection commissioning to done by vendor
In PO under scope of work it mention as Erection commissioning to done by vendor
You need to cut 2% TDS on Erection & commissioning / Installation under section 194C.
Thanks sir
But PO value is 70 lakhs which is inclusive of Erection and commissioning. No separate charges for labour and services. In that case on what amount we need to consider TDS?
THANK YOU
But PO value is 70 lakhs which is inclusive of Erection and commissioning. No separate charges for labour and services. In that case on what amount we need to consider TDS?
THANK YOU
since amount not shown separately thus no need to deduct tds..
Thanks for the reply..
But I got one case law below from my senior..
1. TDS @ 2% is to be deducted u/s- 194C.
Case Laws:
1. Pr. CIT Vs. Bharat Heavy Electricals Ltd 390 ITR 322
2. ABCAUS 2228 (2018) (03) ITAT
Absence of agreement will not alter the nature and substance of transaction.
But I got one case law below from my senior..
1. TDS @ 2% is to be deducted u/s- 194C.
Case Laws:
1. Pr. CIT Vs. Bharat Heavy Electricals Ltd 390 ITR 322
2. ABCAUS 2228 (2018) (03) ITAT
Absence of agreement will not alter the nature and substance of transaction.
Ask your vendor for details of PO and in case if the details are not clearly disclosed by the vendor then you can deduct 2%TDS on the NET Amount.
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