TDS Matter

Dear Pankaj,

Sec 194C refers to any sum paid. Re-imbursement of expenses can not be deducted out of the bill amount for the purpose of TDS. Please refer Circular No 715 dated August 8, 1995.

It does not make any difference whether expenses are shown separately or not. TDS will be deducted on the Gross amount only. 

Hey Pankaj............. As per sec 194 C TDS has to be deducted on the Gross amount.......... So for both the cases TDS has to be deducted at Rs.75000/- only....... Cheeeeeeers................

Helo\lo pankaj....

Priya & Pankaj is right in my co. also we are paying for the civil contracts and TDS is deducted on the gross amount and bifurcation is not relevant for this.....

Dear Pankaj Sir,

I Think that You should get the revised bill from your Contractor With Detail Break up to enable you the Correct TDS Calculation

Dear Pankaj,

We should ask for the revised bill mentioning catagorically the amount of labour & material. Once such seperate bill is available then TDS will be payable on labour bill and not on material purchased. If somehow we are unable to get the revised bill, then TDS have to be calculated on Gross Amount.

hope your query is solved now.