Section 194C
This query is : Resolved
19 November 2009
As per amendment done in Section 194C applicable from 01.10.2009, there is a point read as below:
>No TDS in case of payment of Job Work, if raw material has not been supplied by the payer.
The matter is not clear please reply in detail, from whom the TDS is to be deducted and from whom it is not to be deducted..
>No TDS in case of payment of Job Work, if raw material has not been supplied by the payer.
The matter is not clear please reply in detail, from whom the TDS is to be deducted and from whom it is not to be deducted..
19 November 2009
This is not a 'work' as per clause (iv) of the explanation to section 194C(7) and hence no tax is to be deducted w.e.f 01/10/2009
20 November 2009
Hi Manoj, read my reply given to Saikiran on 18.11.2009. it will solve your query. Thanks and Regards, CA Shakuntala Chhangani
22 November 2009
Hi Manoj, Section 194C has been substituted by a new section with effect from 1.10.2009. As per 194C works shall not include manufacturing or supplying of the prodict according to the requirement or specification of a customer by using raw material purchased from a person other than such customer as such a contract is a contract for sale. this will, however, not apply to contracts which does not entail the manufacture or supply of an article or thing (e.g. construction contracts). Rate of tds :
in case recipient is individual /huf 1%
in case recipient is any other person 2%
in case recipient is a transport operatorfurnishing PAN NIL
In case of works contract being manufacturing or supplying of a product according to customers specification using materials supplied by customer, TDS will be calculated on Invoice value as reduced by value of materials supplied by the customer if separately mentioned in the invoice. else it will be deducted on total invoice value.
Keep in mind that TDS is deducted on entire consideration including service tax. however, there is no surcharge, education cess or secondary and higher secondary education cess. Thanks and regards, CA Shakuntala Chhangani
in case recipient is individual /huf 1%
in case recipient is any other person 2%
in case recipient is a transport operatorfurnishing PAN NIL
In case of works contract being manufacturing or supplying of a product according to customers specification using materials supplied by customer, TDS will be calculated on Invoice value as reduced by value of materials supplied by the customer if separately mentioned in the invoice. else it will be deducted on total invoice value.
Keep in mind that TDS is deducted on entire consideration including service tax. however, there is no surcharge, education cess or secondary and higher secondary education cess. Thanks and regards, CA Shakuntala Chhangani
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