U/s 194c

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sangeet jain (Querist)
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13 June 2012 contract given by municipal corporation to a Pvt.Ltd.company.

A contract given for making a building for rs. 25.00 lacs. the contractor complete the work 100% but completed 2 month late therefore penalty (liquidated damages) deducted 2 lacs as per terms of contract agreement.

Question -1 :Booking of assets will be 25 lacs or 23 lacs (25-2).

Question -2 TDS deduction on 25.00lacs or 23 lacs(25-2).

C.A Anshul Singhal

C.A Anshul Singhal (Expert)
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13 June 2012 EXPLANATION TO SECTION 194 C
(iv) work shall include
(a).......
(b).......
(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 a customer by using material purchased from a person, other than such customer

Read more: http://www.simpletaxindia.net/2009/11/tds-on-job-work-us-194c-amended-from.html#ixzz1xenev9p5

C.A Anshul Singhal

C.A Anshul Singhal (Expert)
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13 June 2012 No Tds Are Required if material use purchase others than muncipal corporation.

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