Applicability of tds when new road is created

This query is : Resolved

Pratik (Querist)
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16 May 2012 1. In case of 1 asseessee,he has created a Road on the way to his Business unit is situated and the Contractor has given the Joint Bill for Material + Labour So whether I should deduct TDS on Whole Amount or NO TDS as it result to generation Of Assets In assessee's books of Accounts..?

2. If answer to above is yes i.e. TDS on whole amount than Can I demand two Separate bills for Material & Labour and deduct TDS only on Labour that will suffice the requirement of Section 194 C ???

Guest

Guest (Expert)

16 May 2012 Yes Tax needs to be deducted. If contractor gives consolidated bill then deduct tax @ 2% or 1% on whole amt.

If separate bills are provided then deduct tax on labour charges only