Monday, May 17, 2010

TDS on Payment to Contractor/Job Work u/s 194C

As per sub-section (3) of section 194C of Income Tax Act 1961 w.e.f. 01-04-2010,  TDS on  any sum is paid or credited for carrying out any work in sub-clasue (e) of clause (iv) TDS will be deducted as per below :-

(i)   on the invoice value excluding the value of material, if such value is mentioned separately in the invoice; or
(ii)   on the whole of the invoice value, if the value of material is not mentioned separately in the invoice

Meaning of  sub-clause (e) of clause (iv) 
e)   manufacturing or supplying a product according to the requirement or specification of a customer by using 
      material purchased from such customer,
       But does not include manufacturing or supplying a product according to the requirement or  
specification of a customer by using material purchased from a person, other than such customer.


TDS rates in detail w.e.f. 01-04-2010                  

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