Tds u/s 194c

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Anshul Khemka

22 Points Posted on 04 July 2013

TDS u/s 194C will be deducted on which amount if the value of materials (say Rs.5500) and the value of labour charges (say Rs.4500) is shown separately in the invoice given by the contractor ? The materials are purchased by the contractor himself form outside parties.

Replies (3)

sunita rana

55 Points Posted on 04 July 2013

in case invoice specified the amount of labour charges then tds should be deduct on that amount.in your case deduct TDS only if he fall in the ambit limit of TDS under 194C

Guest

Posted on 04 July 2013

If the bifurcation is clearly mentioned in the invoice then TDS has to be deducted only on labour part

SAGAR

ARTICLED ASSISTANCE

131 Points Posted on 04 July 2013

Hai Ansul,

As per 194C "work" does not include mateial provided by the customer or purchased by manufactorer/contractor other then such customer. So TDS no need to be deducted on such material expenses (purchased or provided by manufactorer).

where the contractor discloses the value of material separatly in the invoice to that extent tax deduction need not be apply. So only on labour charges TDS has to be dedcted. If the contractor doesn't mention saparatly for labour and material in the invoice then TDS has to be deducted on full invoice value.

In the above case TDS should be deducted 4500/- (if crossed threshold limit)