Regarding tds provisions

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 October 2011 Issue is as follows: A statutory orgnaization mainatins a panel of contractors who are alloted work or who are required to fullfill organization's requirement.
There is a supply of some materials amounting to Rs 10000.
Contractor submits the bill containing following particulars
materials: 10000.00
Cost of transport 200.00
Total: 10200.00
Add: 10% profit 1020.00
Ttal amt payable: 11220.000

Now the que is Under which sec TDS is required to be deducted and on wht amt??
Kindly clarify regarding the same, it'll b very helpful to me.

CA VISHAL RANA,CS,B.Com,AMFI

CA VISHAL RANA,CS,B.Com,AMFI (Expert)
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28 October 2011 TDS u/s 194C deducted if amount paid to contractors more than RS. 30000/- singly or RS 75000/- aggregate in the year...TDS deducted on amount paid or credit in the a/c of contracor.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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28 October 2011 Mr Author,
What Mr Ran means could be the tds under IT Act. There is tds under VAT Acts also.You may check up whether you are liable to do it also.If so, it will be equal to th tax payable by the contractor.
MJK

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Querist : Anonymous

Querist : Anonymous (Querist)

28 October 2011 Explanation.—For the purposes of this section,
(iv) “work” shall include—

(a) advertising;

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

(c) carriage of goods or passengers by any mode of transport other than by railways;

(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.
So now whether provisions of sec 194C can be invoked here,as point (e) makes it amply clear that supplying of materials(finished goods) does not amount to "WORK".