Works contract
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
06 January 2014
what is the treatment of works contract u/s 194c? in case of material supplied by the contractor himself and material supplied by the contractee...
06 January 2014
Mr./Ms.XXXXXXX
Please refer to sub-section (3) of section 194C which reads as under-
"(3) where any sum is paid or is credited for carrying out any work mentioned in sub-clause (e) of clause (iv) of Explanation, tax shall be deducted at source-
(i) on the invoice value excluding the value of material, if such value is mentioned separately in the invoice; or
(ii)on the whole of the invoice valuse, if the value of material is not mentioned separately in the invoice."
sub-clause (e) of clause (iv) of Explanation reads as under-
"(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 customer by using material purchased from a person, other than such customer."
Hope you have got clarification.
Best Wishes
Sathikonda
Please refer to sub-section (3) of section 194C which reads as under-
"(3) where any sum is paid or is credited for carrying out any work mentioned in sub-clause (e) of clause (iv) of Explanation, tax shall be deducted at source-
(i) on the invoice value excluding the value of material, if such value is mentioned separately in the invoice; or
(ii)on the whole of the invoice valuse, if the value of material is not mentioned separately in the invoice."
sub-clause (e) of clause (iv) of Explanation reads as under-
"(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 customer by using material purchased from a person, other than such customer."
Hope you have got clarification.
Best Wishes
Sathikonda
Querist : Anonymous
Querist :
Anonymous
(Querist)
06 January 2014
in case contractor charges vat on total invoice value then what is the treatment u/s 194c??
06 January 2014
Mr./Ms.XXXXXX
You must deduct tax at source from the entire value of the invoice (including VAT).
Best Wishes
SathikondaA
You must deduct tax at source from the entire value of the invoice (including VAT).
Best Wishes
SathikondaA
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