Tds on lift

TDS 5071 views 7 replies

My Building construction company have purchase of LIFTS . Can we Deduct TDS on Lifts ? If yes, kindly give me details.

Replies (7)

tds is not applicable on purchases.so you dont have to deduct tds on purchase of lift.

No tds on purchases, Tds will be deducted at the time of installation under sec -194C

Thanks you for help.

Hi All,

Purchase of lift involves erection, installtion vendor will charge both vat and service tax in this case how to treat it comes under work contract. 

TDS is not applicable on purchase of lifts but applicable on installation charges @ 1% or 2% as the case may be

 

but if vendor provides cumulative price i.e inclusive of installation charges than better to deduct TDS on entire amount i.e lift cost plus installation.

Usually the cost and the installation charges are mentioned seperately on the bill. TDS should be deducted only on installation charges.

agree with Tax Pandit


CCI Pro

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