Is TDS applicable on material and Labour charges?

Is TDS applicable on material and Labour charges?


Is TDS applicable on materials?

When materials are supplied no deduction is possible. Consequently, no TDS is required to be made. However, when payment is made either in cash or in kind to contractor/sub-contractor tax is required to be deducted.

On which things TDS is applicable?

TDS or Tax Deducted at Source is income tax reduced from the money paid at the time of making specified payments such as rent, commission, professional fees, salary, interest etc. by the persons making such payments. Usually, the person receiving income is liable to pay income tax.

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Is TDS applicable on purchase of raw material?

TDS deduction not applicable on purchase of raw material from non-resident Indian.

What is TDS limit for contractors?

TDS Rate Chart for F.Y. 2020-21 (A.Y: 2021-22)

Section Nature of payment Threshold Limit
194B Winning from lotteries 10000
194BB Winning from Horse race 10000
194C Contractor-Single transaction-Individual/HUF -Others 30000
194C Contractor – Consolidated Payment During the F.Y. – Individual/HUF – Others 100000

Is TDS applicable on mobile bill?

No Tax is recovered from source for post paid telephone bills and mobile bills. No TDS for prepaid calls also. In such cases the recipient of service is liable to deduct tax and remit the same to the exchequer of the Government.

Can we deduct TDS on purchase?

It may be noted that TDS under section 194Q is triggered when aggregate value of purchases made from a one resident seller exceeds Rs. 50 lakhs and buyer is liable to deduct TDS on value of Goods purchase above Rs….Recent Changes in TCS/TDS on Sale-Purchase of Goods.

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Categories Rate
If PAN/ Aadhar of seller (resident) is available (Section 194Q of the IT Act) 0.1\%

What is the TDS rate for Transporter?

Rate of TDS under section 194C

Payment To Rate of TDS if PAN Furnished Rate of TDS if PAN NOT Furnished
Company, Firm, LLP, or to any other resident person other than Individual/HUF 2\% 20\%
Transporters (Less than 10 Vehicle) NIL 20\%
Transporters (More than 10 Vehicle) 1\% or 2\% according to recipient status as above 20\%

Is TDs applicable on TDs on material used by a contractor?

If Material will supplied by the principle officer then TDS will deducte u/s 194C at applicable rate (For C-2\% and NC – 1\%) and if material and printing both done by supplier then TDS Not applicable. In present situation, material is sold and it is not supplied to contractor, hence not liable for TDS.

Should we deduct TDs if we get a bill with GST?

Here we will learn how to deduct TDS if we get a bill of a party (vendor) with GST and what will be the entries in this case Should we deduct TDS on Base Value (Amt before GST) or Total (Amt including GST) As we know GST is Added in to the amount and TDS is deducted from Bill

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What is meant by deducted TDs on total amount?

Deducting TDS on Total amount would mean deducting Tax on Tax. hence it would lead to double taxation We need to pay to the Party balance amount of 118000 – 10000 = 108000 This tax deduction is same in case we get Input Tax Credit of this GST or not

What is the rate of TDs on government contract payments?

Thus, the rate of TDS from payments made by the government or other specified persons to any contractor will be 2\% or 1\% of the gross payment or, as the case may be, the net payment, depending on the terms of the contract. 2.