TDS on Furnishing works

5042 views 2 replies

Ravishankar K

Accountant

461 Points Posted on 30 March 2011

Dear Friends,

We gave work to one furniture industries to furnish our office, they will prepare as per measurement and install computer tables, cubicles, etc, so in this case do we need to deduct TDS from them under 194 C @ 2% .

How is this furnishing work different from the normal furniture which we buy suppose we buy furniture directly and he supplies a full furniture ( like table, sofa, chairs etc) we dont detect tds, because earlier we gave order of 60000 to one vendor to make customized furniture and we did not deduct TDS because the vendor directly supplied furniture to us, but this party working on order of 5 lakhs is working in our premises and cutting and measuring etc, so is TDS under sec 194 C or any other sec applicable to them?

Replies (2)

CA Saiyum khan

Practicing CA

690 Points Posted on 30 March 2011

TDS U/s 194 C would be applicable if the contract for furnishing is given whether inclusive of material or without material. If the peson carrying out the contract is other than indiviudal and HUF (i.e. Company, Partnership firm etc.) then TDS would be deductible @ 2% else TDS would be @ 1%.

TDS on purhcase of standard furniture available in the market does not apply but it is applicable only when specific contract is given for furnishing the office or other customised furniture of specific size and measurement.