Tax Professional and in Service
1795 Points
Joined June 2009
Hi Sachin,
Since it is not a regular contract for maitainance, only labour charge i.e. services charges would be subjected to TDS u/s 194C if the service charges single payment exceeds INR 30000 or aggregate sum of service charges in the year is more than INR 75,000.
Cost of material would not at all subjected to TDS provided is is not AMC. Income Tax has vide circular already notified that in case of regular contract like AMC, TDS would be deducted on the entire sum (i.e. inclusive of material cost).
The nature of service mentioned by u is not a regular service like nature. Hence only service charges would be eligible for TDS deduction.
Hope this solves ur query.
Thanks and Regards,
Manoj B. Gavali