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Tds u/s 194c or 194j

15 December 2019

whether for deduction of tds u/s 194 c it is mandatory that the contractual service or product supplied should come within the definition of "WORK" ?
All banks and organisations which have entered into annual maintainance contract for repair of computers is deducting tds u/s 194 c however it is not within the definition of Work, but there is a contract?

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3 Replies

Ritwick Bhanusali (student) (122 Points)
Replied 16 December 2019

Yes, repairs and maintenance along with replacement of any defective materials fall under works contract, liable for TDS u/s. 194C

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Chirag Sharma (14 Points)
Replied 16 December 2019

But how does it fall within the definition of work u/s 194 c

Ritwick Bhanusali (student) (122 Points)
Replied 16 December 2019

(iv) "work" shall include—

(a) advertising;

(b) broadcasting and telecasting including production of programmes for such broadcasting or telecasting;

(d) catering;

(e) manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer, but does not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer.

Here the material is supposed to be purchased on behalf of the customer.

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