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TDS ON JOB CHARGES

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anand maru

37 Points Posted on 23 March 2020

whether TDS is attracted on Job Charge or not in 94C???

Replies (4)

Quick Summary

This discussion clarifies whether Tax Deducted at Source (TDS) applies to job charges under Section 94C. TDS is indeed applicable on job charges, calculated on the invoice value. If materials are separately itemised, TDS is deducted on the labour component only; otherwise, it's on the total invoice value. The threshold for deduction is Rs 30,000 per single invoice or Rs 1,00,000 aggregated annually, with rates of 1% for individuals/HUFs and 2% for others.

suraj

Student CA Final

165 Points Posted on 25 March 2020

Yes TDS applicable on job charges under section 194C
TDS deducted on the Invoice value excluding the value of materials purchased from such custmer if separately mentioned
otherwise on the invoice value

CA Naveen Chand

Chartered Accountant

8022 Points Posted on 25 March 2020

agreed with SURAJ !

TDS applicable on invoice value if Invoice Value does not bifurcate Material and Labour . Otherwise on value other than Material Component .

CA Naveen Chand

Chartered Accountant

8022 Points Posted on 25 March 2020

TDS is required to deduct of single invoice bill > rs 30,000

or agg. of value > 1,00,000

Rate

If contractor is Individual / HUF = 1%

Others = 2 %

Tax Jankari

manager

36 Points Posted on 25 March 2020

Section 194- I deals with all the provisions of Tds on Rent. According to this section, if any person pays the rent to any other person (who is a resident), then that person is liable to deduct TDS on fulfillment of certain conditions.