TDS 94C

sorry the due date is only 31.5.2010

Any credit entries passed in march month will require to make tds payments

on or before 31.5.2010

now, 31 may is gone. tell me a solution , wat to do next

sum1 told me tht, for the TDS of last FY , we can deposit it before 30sep of next FY. is it true?

and we wont be an assessee in default

first thing that is not an expence that is not a contract

no need to deduct tds for purchase of furniture

Hello Shweta,

Why you are worrying abount the TDS deduction for the capitalisation of asset. For the purchase of any asset TDs is not required to be deducted at all.

As per 194C, TDS has to be deducted if any payment has been made to a contracter. But as the payment is made to a company for purchase, no such requiremnet would be there.

Please tell me what you exactly want to know?

In your query there are two things one is furniture and another is fittings. To understand the applicability u/s 194C first we need to understand the defination of the word work. Work doesn't include manufacturing and supply of product. So if there is any supply of material which should be seprately disclosed in the bill will not be considered u/s 194C

Hello Shweta,

Why you are worrying abount the TDS deduction for the capitalisation of asset. For the purchase of any asset TDs is not required to be deducted at all.

As per 194C, TDS has to be deducted if any payment has been made to a contracter. But as the payment is made to a company for purchase, no such requiremnet would be there.

Please tell me what you exactly want to know?

Now come to the fittings. Fittings include supply of labour and hence will be liable to TDS seprately. All the limits will be applied to supply of labour excluding material purcahsed. The important thing is that bill should seprately show the amount of product purchased.

As i have mentioned earlier that purchase of material will be excluded so both the point will be irrelevant in the case of asset purchased. But for supply of labour you have to deduct TDS and if you dont deduct it then this expense will be disallowed.

hi dhiraj,

actually, my boss has already deductd TDS-94C on the advance paymnt to the other compeny and said tht it was a contract from his side to the other compny and thrfr, 94C apllies. now the problem is :

he wants to know whthr to deduct tds on the balance paymnt or not, which is obviously yet  to be made.

hi sudhanshu,

dont u thnk tht fitting of furniture will be included in the cost of the asset. hence, it wudnt be a seperate expense.

Dear Shweta,

Here we have are talking about tax and not accounts. Although in accounts we used to capitalise fittings but when we come to income tax we need to go according to section 194C.

i have already mentioned you that in fitting if there is any amount which is charged as labour charges then you need to deduct TDS on it. As Section 194C excludes manufacturing and supply of product but include supply of labour.

To remove your doubt about whether on asset TDS is applicable or not i am mentioning an example. If suppose you have given a contract for construction of a building whether TDS will be applicable or not??

Answer is although building is an asset but supply of labour will be considered u/s 194C and hence TDS will be applicable and in this case we capitalise all the expenses to the building a/c but for tax purpose we will seprate the material purcahsed and labour charges.

thnx sudhanshu.