Tds 194c

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2012 A job worker doing job work on material supplied by the customer raises an invoice of labour charges only. The invoice also includes vat charged from the customer on 70% of the charges. My question is whether the customer required to deduct tds u/s 194c on whole amount of labour charges or on the 30% of the value on which no VAT is charged.

Anand Modi

Anand Modi (Expert)
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30 October 2012 customer have to see that is the labourer is supplying any goods for which he is charging VAT and if no goods are supplied and only labour is provided then TDS will be on full amount.

Arun Biyani

Arun Biyani (Expert)
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31 October 2012 first i could not understand how job charger charged vat on job charge however assuming that job charger has purchased some raw material from other party apart from the raw material supplied by you. now it was long debatable question, now income tax has made definition of work clear which excludes the raw material purchase from other party for the work. there fore only 30% amount will attract the TDS. however the most important thing is that in the invoice it has to be separtely mentioned that 30% is towards job charge and 70% is towards the material otherwise full invoice shall attract the tds.

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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11 November 2012 I think you have mixed two things. One is Material + Labour. If this is so then VAT + ST is to be charged and acordingly TDS has to be deducted and set off etc. etc. shall be applicable. If only labour is supplied then on full value of the Bill you have to charge ST and on full value Plus ST TDS u/s 194C is applicble