Tds on Servicing of Cars

Hi to all

A company gives it Car for servicing to a party on regular intervals. The Party does servicing along with Service Tax and it also replace parts if requires and charge Vat for that. The Party gives a consolidated Bill for both components(Service Charges and Parts) and both Components can be easily bifurcated in the Invoice.

My query is whether Tds is applicable u/s 194C or not?And if yes, then on what component, whether only on the Servicing Charges or on the consolidated amount?

Thanks in Advance

Replies (8)
Quick Summary
TDS on car servicing applies under section 194C. If invoice shows separate charges, TDS is deducted only on service portion. If not bifurcated, TDS applies on the total bill including parts and materials.

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...

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