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TDS on repairs

Pavan (Manager) (80 Points)

17 February 2010

Whether TDS is required to be deducted on payments made towards repair of a vehicle. If yes under which section?

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6 Replies

Pankaj Arora (Learner) (3134 Points)
Replied 17 February 2010

yes TDS will deduct into Section 194I for Professional service

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Amir (Learner) (4016 Points)
Replied 17 February 2010

Dear Pawan,

TDS will be deducted u/s 194 C i:e Contractors.

C.Balaji (Learner) (1867 Points)
Replied 17 February 2010

Agree with Mr.Amir...

194 C...

Ameet (L) (1678 Points)
Replied 18 February 2010

yes it will conver u/s. 194C

llllVICTORllll (Internal Auditor) (511 Points)
Replied 18 February 2010

But it could also be 194J na? REpairing a vehicle(for one time and not a contract) is a technical service

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Ameet (L) (1678 Points)
Replied 18 February 2010

I dought it cover under section 194j. since the service provides deos not cover under definition of "Professional service" or "Technical Services". As explanation provided to section 194J and such other notified section u/s. 44AA

It also to be noted that in cae payment includes labour charges as well as cost the parts and a single Job order agsint it.

But the Party issued a Bill which clearly shown the seprate calculation of labour and consumable.In that case TDS is to be deducted

Citation :- CBDT Circular 666 dated 08/10/1993, clause 5.3, reported in 204 ITR (St) 40.

But w.e.f 01/10/2009 as per post amended section 194C (3) tax need to be deducted only on the value excluding the value of material if such value is separately mentioned in the invoice.