TDS rate on Designing,Civil Work and Material purchase for construction of Biogas Plant

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Ravi Konda (Querist)
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10 July 2024 Dear all,

Our company has given one vendor a comprehensive contract for the design, material procurement, construction, and installation of a Biogas plant.

I wanted to know at what rate TDS will apply on such a contract type.

Thanks & Regards,
Ravi Konda

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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10 July 2024 Under section 194C, for resident Indian co.

Ravi Konda

Ravi Konda (Querist)
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10 July 2024 Is there link available so that it will be helpful for us at time of audit

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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10 July 2024 If the contract is single without distinguishing the designing amount separately, then it is considered composite order as installation of plant and machinery on turn key basis, and will be considered under sec. 194C IT act.

Refer: 1. https://taxguru.in/income-tax/sc-explains-tds-on-construction-erection-commissioning-of-plants.html

2. https://www.casemine.com/judgement/in/5ae19e7c9eff43715bafa3d6

Ravi Konda

Ravi Konda (Querist)
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10 July 2024 Thank you sir,it will help us in explaining to auditor

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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10 July 2024 You are welcome.