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Tds on amount paid to tailor

Srimanth (CA in Practice) (119 Points)

23 August 2012

Guys i've come across a situation wherein a college has paid Rs.200000 to a tailor for stiching the uniforms for the students so should the college deduct TDS and pay him the amount?? In case yes should his TDS be under professional services ?? Please give proper explanation for your answers

Thanks in advance guys :-)

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10 Replies

CA SANDESH MAHIPAL (Practicing in GST and MSME ) (1985 Points)
Replied 23 August 2012

As per my view Tds will be deducted under section 194c @ 1% on full amount. This is a contract with tailor. Since college is giving clothes to tailor and he manufacture dress for the college, this will cover in the definition of work as per the section 194c.

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CA Romil Shah (CA ) (669 Points)
Replied 23 August 2012

TDS TO BE DEDUCTED UNDER SECTION 194C TDS ON PAYMENT TO CONTRACTOR @ 1% ON FULL AMOUNT........

llllVICTORllll (Internal Auditor) (511 Points)
Replied 23 August 2012

Situation to look at

1. Does Tailor buy cloth on his own and make uniform and supply at to college?

If yes then no TDS

OTherwise

Yes TDS at 1%

Ravi Shankar Dubey (zindagi ek sangharsh) (100 Points)
Replied 23 August 2012

TDS DEDUCTED UNDER THE SECTION 194C. @ 1% ON FULL AMT......

CA Daksh Dawar (Chartered accountant ) (80 Points)
Replied 24 August 2012

If the Invoice raised by the tailor is for Job work charges than it will covered under sec.194C nd hence liable to TDS @ 1%.

OTHERWISE

If the invoice raised by the tailor is for "college dress" than it shall be considered as a transaction of purchase of goods and hence no TDS liability shall arise .....

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 24 August 2012

Originally posted by : Srimanth
	Guys i've come across a situation wherein a college has paid Rs.200000 to a tailor for stiching the uniforms for the students so should the college deduct TDS and pay him the amount?? In case yes should his TDS be under professional services ?? Please give proper explanation for your answers Thanks in advance guys :-)

the query is not complete,

collage paid amount from own pocket or it was collected from students as uniform fees then paid to tailor? whether tailor provided only stiching job or provided the materials / cloth also?

diff set of combinations will get diff routes of tax imposition :)

Harkesh Kumar (Finance Manager) (97 Points)
Replied 24 August 2012

all above are right !

Rajesh Rawat (CA-IPCC/Article ) (53 Points)
Replied 26 August 2012

Dear,

Firstly you should go through sec 194 C and read work contract for your understanding.

As per your problem, if you provide clothes to tailor for making dresses with specification. So, you are liable to deduct tds before making the payment and rate of tds @ 1%. Otherwise you are not liable to deduct tds.

Thanks