Tds on works contract u/s 194c
This query is : Resolved
25 May 2012
bill value is total rs 5,00,545/- which comprises of material - 432435 & labour- 68110 ( thus both are separately disclosed in the invoice, hence whether TDS is deductible on the whole invoice value or only on the labour portion.
Note: material is supplied by the contractor
Note: material is supplied by the contractor
25 May 2012
Sub-section 3 of Section 194C provides that where the value of material is separately mentioned on the invoice, TDS will be deducted on the amount excluding the value of material.
Accordingly, in this case TDS shall be deducted on Rs. 68,110.
Accordingly, in this case TDS shall be deducted on Rs. 68,110.
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25 May 2012
So if I pay 30% adv for the contract value thus if TDS deductible on labour portion only which omes to 68110*30% = 20433 on a single contract , thus 194C doesnot attract as limit for a single contract is 30000/- .Hence TDS should not be deducted at the time of payment of advance.
Am I right or since the full payment on a single contaracr (including material) has crossed 30000/- hence TDS is deductible at the time of giving advance
Am I right or since the full payment on a single contaracr (including material) has crossed 30000/- hence TDS is deductible at the time of giving advance
25 May 2012
So if I pay 30% adv for the contract value thus if TDS deductible on labour portion only which omes to 68110*30% = 20433 on a single contract , thus 194C doesnot attract as limit for a single contract is 30000/- .Hence TDS should not be deducted at the time of payment of advance.
Am I right or since the full payment on a single contaracr (including material) has crossed 30000/- hence TDS is deductible at the time of giving advance
Am I right or since the full payment on a single contaracr (including material) has crossed 30000/- hence TDS is deductible at the time of giving advance
25 May 2012
At the time of giving the advance, you know that the total amount will exceed Rs. 30,000. Therefore you should deduct TDS at the time of advance.
25 May 2012
thus tds should be deducted on 20433 @ 2% for company at the time of giving advance against this contract even though the total amt of adv payment would be 150136/-
25 May 2012
thus tds should be deducted on 20433 @ 2% for company at the time of giving advance against this contract even though the total amt of adv payment would be 150136/-
25 May 2012
thus tds should be deducted on 20433 @ 2% for company at the time of giving advance against this contract even though the total amt of adv payment would be 150136/-
25 May 2012
Yes TDS will be deducted on Rs. 20,433 even though the payment is for a sum of Rs. 1,50,136. TDS will not be deducted on the advance in respect of material.
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