Student
3986 Points
Joined July 2018
1. As per explanation (i) sec 194C(3) it is clarified that if the value of the material is separately specified in the invoice then TDS shall not be deducted on the material portion.
2. This is for a simple reason that materials being part of the work will not contain profit portion or the revenue of the contractor. Even it does contain it is a sale of a product and sale of product will not come under the purview of TDS.
3. Hence, TDS u/s 194C is to be deducted only on the labor portion which is the revenue for the contractor.
Please correct me if the above solution has an alternative view.