10 March 2011
Writing in the bill as Custom Table- shows that you have purchased a table from him. In this case no TDS is required to be deducted. It will be better to get description of the furniture made by him including the table and deduct TDS on full amount if material bills are not in your company's name.
Otherwise deduct TDS on labour charges only in case separate bills of material purchase are availed in your company's name.
10 March 2011
As stated by you, carpenter raised invoice stating Furniture-Table Rs. 1 Lakh. No TDS is required as it is not possible to identify the labour amount.
TDS is applicable on labour charges and not on material value.
CAclubindia
