Whether TDS u/s 194C applies on car servicing charges

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Hi, Suppose a manufacturing company owns 4 vehicles. These vehicles are used by the board of directors. On recurring basis, company incurs expenditure on maintenance and servicing of these vehicles. Such expenses are in the range of Rs 50k per vehicle. Servicing is done by the authorised motor repair shops. The bill from such shops is partly for labour payments and for materials. Whether the company needs to deduct TDS on the labour charges?

Replies (2)

no company needs not  to deduct TDS on the labour charges

if the servicing company is giving two different bills and one for labour charges and one for material and the sum of the all bills pertaining to Labour charges is not exceeding the limits specified in 194C then the company need not deduct TDS

if the bills amount exceeds 194C then TDS needs to deduct

I

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