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Clarification nedded on section 194C

shibin.s.pullan (student) (116 Points)

15 January 2010

Advance given against purchase of material is it liable for TDS.Contact entered is inclusive of material cost (i.e labour and material) Can you please explain the provisions regarding thisi n detail, with sections and circular nos if any

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shibin.s.pullan (student) (116 Points)
Replied 15 January 2010

Friends one more doubt,

In case of professional fee is it Liable to deduct Tax on the out of pocket expenses reimbursed

Again, expalain in detail

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Amir (Learner) (4016 Points)
Replied 15 January 2010

Dear Shibin,

If on (same) invoice charges of material & labour are separately mentioned then TDS is to be deducted on the labour charges only otherwise TDS shall be deducted on the entire value...Sec 194C(3)

REGARDING REIMBURSEMENT OF EXPENSES, YES TDS IS TO BE DEDUCTED ON AMOUNT INCLUDING REIMBURSEMENTS.....CIRCULAR NO. 715 ISSUED IN 1995

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Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 15 January 2010

TDS deductible on reimbursement of expenses also u/s 194J

Ram Avtar Singh (Nagari Sultanpur U.P.Delhi) (14497 Points)
Replied 15 January 2010

No TDs on sale and purchase

Professional charges TDs applicable under sec 194J

Sorabh Gupta (Manager ( Taxation )) (877 Points)
Replied 15 January 2010

Dear Shibin

Your 1st Question

If you have a contract to a party ie. of material+labour , then 2 points is there. (A) Whether Material & labour are shown seprately in the invoce OR (B) inseprable . Then in (A) you have to deduct WCT and in case (B) you have to deduct TDS on labour amount.

Your 2nd Question

Hope you have no doubt.