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TDS on Interior Decoration

07 September 2009

If there is a contract of Interior decoration and it includes archtectural fees.Will it be right to deduct TDS u\s 194C for the Contract Amount excluding the fees portion and further deducting tds u\s 194J on such fees.?

Will WCT be chargeable on suchh contract??

What if such archtectural fees does not exceed Rs. 20000

Any Case laws in such case?

Pls answer it' s urgent Thanks in advance

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4 Replies

llllVICTORllll (Internal Auditor) (511 Points)
Replied 07 September 2009

when there is a conflict of TDS, it is always better you deduct TDS at higher of the rate, to be safe on your part, and if it is excess deduction let them claim it from the department while filing the returns.. thats my view

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CA Surya Desraj (CA) (75 Points)
Replied 07 September 2009

Originally posted by :Meghdoot
"	when there is a conflict of TDS, it is always better you deduct TDS at higher of the rate, to be safe on your part, and if it is excess deduction let them claim it from the department while filing the returns.. thats my view	"

thanks very much

Quinn Warren (Interior Designer) (21 Points)
Replied 15 January 2010

Always think of the assumption that the contract is the meeting of the minds between parties. You can stipulate what is agreed upon. But in particular case like a interior design contract, it is a well settled rule to deduct the TDS at reasonable amount. With regards to case law, visit scribd.com for more information.

School Of Interior Design