Tds on Servicing of Cars

Yes, TDS will deduct under section 194C I.e. Contract and it will deduct on consolidate amount.

Dear Ritesh,

Friend Pankaj is rite unless there r separate bills TDS wull be deducted on the entire amount............

Hello Ritesh,

Value of materials and VAT there on are excluded from TDS, if it is shown separately on the bill.

On the balance amt u deduct TDS u/s 194C.

(On the basis of my understanding that service of the car is not a contract for maintenance like AMC)

Routine, normal maintenance contracts which include supply of spares will be covered u/s.194C. Any sum paid for the same is liable for TDS. (Refer Circular No. 715 dt. 8th Aug, 1995.) Hence, on entire amount to carry out the contract,  TDS is to be deducted.

Originally posted by : G.K..
	Hello Ritesh, Value of materials and VAT there on are excluded from TDS, if it is shown separately on the bill.   On the balance amt u deduct TDS u/s 194C.   (On the basis of my understanding that service of the car is not a contract for maintenance like AMC)

If on bill the amount of spares n VAT is clearly mentioned then TDS is to e deducted only on rest .

If bifurcation is not disclosed on the bill then u have to deduct TDS on full amount.

dear friend,

if material cost is identified separately , then no need of deducting tds on cost of material. only service charges are eligible for  tax deduction.

If the cost of material separately shown in bill then TDS would be deducted only service charges u/s 194C.

Thanks to all for replying...