TDS
This query is : Resolved
04 February 2020
Under GST supply of solar system is considered as works contract and 70% of Value of total contract will be considered as supply of goods having tax rate of 5% and rest 30% of total value of contract will be considered as supply of service having tax rate of 18%. Thus, average rate of gst will be 8.90%. ( clarification issued vide notification no. 24/2018 - Central Tax (rate) dated 31.12.2018).
Now, my question is whether TDS U/s. 194C of the Income tax or any other section of Income Tax is applicable on above transaction?
Now, my question is whether TDS U/s. 194C of the Income tax or any other section of Income Tax is applicable on above transaction?
04 February 2020
Check the definition of works contract under sec 194C. It will apply here or not needs to be checked accordingly.
05 February 2020
Sir, as per sub-clause (e) of clause (iv) of the Explanation to section 194C, "work" shall include ... 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.
In my case material is not supplied by the customer, but it is supplied by the supplier along with installation service only. ( as already mentioned above, value of goods will be 70% of the total contract value). According to me, my case does not fall under the definition of work as it expressly excludes same from the definition of work ("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").
Is this stand correct?
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.
In my case material is not supplied by the customer, but it is supplied by the supplier along with installation service only. ( as already mentioned above, value of goods will be 70% of the total contract value). According to me, my case does not fall under the definition of work as it expressly excludes same from the definition of work ("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").
Is this stand correct?
05 February 2020
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").
supplier is not customer or not associated with customer then no tds applicable.
supplier is not customer or not associated with customer then no tds applicable.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- TDS U/S. 194NF
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Applicable TDS rate for sale of property in Nov 2024
- Import license renewal
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
Trending Online Classes
CAclubindia
