28 June 2009
What is the defination of works contract and on what amount TDS is deducted. is there any provision that says, 30% should be considered as labour charges and on the rest of bill amount i.e. 70% is to be taken for deduction of TDS @ 4%.
28 June 2009
where labour is also incloved and material is also invloved then it is called work contract. TDS @2% u/s 194C on whole amount including for material and labour is deductible.
29 June 2009
“works contract” means a contract wherein, transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods.
70%-30% issue is not in IT Act,1961 but certain states has included such provisions in their respective VAT Act.
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