Yajuvendra Rawat (Internal Auditor) (296 Points)
17 October 2009Dear All,
I came across a bill which includes purchase of material, The bill also includes labour charges of Rs. 250/- in it. The amount of bill exceeds Rs. 20,000/- . In my view T.D.S. should be deducted on the same. Had it been a seperate bill for labour i would have deducted T.D.S. only on Rs. 250/-. According to our CA T.D.S. should not be deducted, in his view labour charges involved is a part of cost of that product. Please clarify whether T.D.S. should be deducted or not
Sahil
(CA FINAL)
(182 Points)
Replied 22 October 2009
| Originally posted by :Yajuvendra Rawat | ||
| " | Dear All, I came across a bill which includes purchase of material, The bill also includes labour charges of Rs. 250/- in it. The amount of bill exceeds Rs. 20,000/- . In my view T.D.S. should be deducted on the same. Had it been a seperate bill for labour i would have deducted T.D.S. only on Rs. 250/-. According to our CA T.D.S. should not be deducted, in his view labour charges involved is a part of cost of that product. Please clarify whether T.D.S. should be deducted or not |
" |
TDS SHOULD NOT BE DEDUCTED ON THE LABOUR OF RS. 250 on the plea that u have just purchase the raw material n along with that u had not contracted with ur creditor for application of labour. UR PERFORMANCE IS HERE JUST TO PURCHASE THE MATERIAL FROM CREDITOR N AS PER AS 2 RAW MATERIAL SHOULD BE VALUED AT COST + INCIDENTAL CHARGES IF ANY.
N COST HERE MEANS TO BILL VALUE WHICH ONE IS INCLUSIVE OF COST
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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