Upgrade and Save: Get 10% OFF on CAclubindia Pro Subscription! Use Code: SAVE10 Subscribe Now!

Tds u/s 194c

Devendra (Chartered Accountant) (4775 Points)

22 June 2012

XYZ Pvt. Ltd. has raised a Bill on Mr. A which includes labour charges and material amounting to Rs. 280000/-. Whether TDS is applicable in such case?

Or is TDS applicable only if Labour charges are shown separately in the Bill?

Regards,

Devendra Kulkarni

Reply
Follow
Share

2 Replies

CA. SUDHARSAN K G (Chartered Accountant) (472 Points)
Replied 22 June 2012

Dear Friend, 194C attracts on the entire amount of contract. However, if the cost of materials is REIMBURSED not included the value of contract you can exclude the value of materials reimbursed for the purpose of deduction of tax under section 194 C

Upgrade to CAclubindia Pro. Subscribe Now!

ANSHUL AGARWAL (STUDENT) (141 Points)
Replied 22 June 2012

Originally posted by : SUDHARSAN K G

Dear Friend,

194C attracts on the entire amount of contract.

However, if the cost of materials is REIMBURSED not included the value of contract you can exclude the value of materials reimbursed for the purpose of deduction of tax under section 194 C