Hi All,
The client is receiving services from a particular company for rendering Interior Works.
The Interior works company is Supplying bith labor and materials for the contract. But they have billed separately for labor and material .
Is TDS 194C apply to both the supply of mateials portion also?
As per 194C, the material will not attract the TDS, its applicable to Labour portion only.
only the TDS PORTION SHOULD BE DEDCUTED ON SERVICES RENDERED BUT NOT ON MATERIAL SUPPLIED AS THE CONTRACTOR IS CHARGING SEPERATE AMOUNT FOR THE MATERIAL AND JOB WORK IT IS OBIVIOUS THAT IT SHOULB BE CHARGED ON TDS ON INTERIOR WORK
the billed has been made seperately that's why only the TDS to be deducted on the labour bill value only
i agree with all.
if the bill is made seperately for labour work and and materials, then only the job work done by labourers only attracts TDS and not the materials
Since the contractor provides separate bills for supply and labour,so TDS should be deducted only on the labour bills and not on supply bills...however under the composite scheme if supply and labour bills are not divisible then TDS on the entire amount of bill should be deducted
what will the TDS rate.
Thanks
1 % for individual or huf or 2 % for others under Section 194C..
What if the supplier issues the composite invoice for labour and material , and they mentioned 40% for labour and 60% for material than on which amount tds is to be deducted ?
Hi Harshal
If separate invoice issue than only on labour portione tds is applicable
If that company is providing the services of Interior Works, which by the term seems interior decorator, then tax has to be deducted u/s 194J and not 194C.
The services specified in the section 194j are
a. Law
b. Medicine
c. Engineering
d. Architect
e. Profession of Accountancy (Including Chartered Accountants)
f. Technical Consultancy
g. Interior Decoration
h. Advertising (Here advertisement refers to consultancy relating to advertising and not payment for advertisement media. For example, amount paid towards advertisement expenses shall be covered by 194C, but amount paid to get an ad film prepared or an advertisement designed, then it shall be covered under 194J)
Just check once under which category the services fall...
Works contract U/S 194c
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