Liability for tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 May 2013 Dear sir,
Should tds be deducted on fabrication work? the party is paying the VAT bill(fabrication of truss; bill charged on kg basis).

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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14 May 2013 Yes. fabrication works will apply TDS u/s.194C. need to deduct tds

Querist : Anonymous

Querist : Anonymous (Querist)

15 May 2013 sir but the party is supplying own material & charging VAT in the bill(it is supplying tax invoice).. still a liability or it can be treated as purchase?
Please explain...

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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15 May 2013 Where the materials issued by customer and fabrication work only done and send by contractor then TDS apply u/s.194C

Incase contractor using their own materials, it is nature of purchase only. no need to deduct tds

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