banner_ad

Tds on electricity material supplier invoice

5602 views 1 replies

Sir,

Can I deduct TDS when making a payment to contractor for supplying of  Electrical Materials , Testing & Repairing  of above Materials. They have provided us an Tax invoice on 10.10.2015 , but we have received the invoice on 16.02.16, including VAT @ 5%.We have already paid Rs.20000.00 on 22.09.15 as advance.Now we are going to pay the final amount.So what is the TDS % if applicable and from which date.

 

Replies (1)
  1. If it is just supply of material, then no need to deduct tax at source. But in addition to supply, if labour is also involved, then tax to be deducted at source u/s 194C on labour portion provided material and labour is shown separately. If not shown separately, then tax to be deducted u/s 194C on full invoice value.
  2. If the contractor is individual (TDS @ 1%) and for others (TDS @ 2%) on the total value (if aggregate value exceeds Rs.75000 in a year or a single bill value exceeds Rs.30000)
  3. PAN of the contractor is necessary
  4. Assuming that labour is also involved, TDS is applicable even on advance payment (on exceeding the limit), However, in this case advance of Rs.20000 paid does not exceed threshold and hence no TDS applicable at the time of payment of advance
  5. Though the invoice is dated earlier, it has been received by you now and hence account it in this month and pay TDS (if amount exceeds the limit) within due date by next month.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details