TDS under section 194C or 194J

[Roshan Mandot]

TDS applicability in respect of following transactions 1.Machinery Erection Charges 2.Erection & Commissioning Charges 3.Fabrication Charges 4.Dismantling & Erection of Machinery i.e. supverising teh entire work. Spare parts & others provided by Company. It appears taht sometimes there are taxable u/s 194C sometimes ir appears that it is taxable u/s 194J. please provide necessary detaisl in realtion of this. Thanking you. Roshan

[CAGOPALJI AGRAWAL]

Please be specific in your query with relevant facts and information.

[Surender Gupta]

You have mixed various things. You want TDS on renting of tangible goods or TDS on dismantling, erection activities or consultancy etc.

[RAJAGOPALAN R]

IN CASE THE ALL THE TRANSACTIONS ARE BEING EXECUTED IN A SINGLE CONTRACT THEN 194 C IS APPLICABLE. IF DIFFERENT ORDERS ARE ISSUED AND THEN ONLY SUPERVISION WILL COVER UNDER 194J AND REST OF THE JOBS ARE BEING EXECUTED THROUGH LABOUR ONLY 194C IS APPLICABLE.

[DEV KUMAR KOTHARI]

If it is primarily works contract- it is covered by S.194C if it is primarily professional or technical service ( of experts) then s. 194J will apply. Have separate agreement or allocations for works contract, exerts contract and supply contract.

AI Summary

TDS applicability: classify payments as works contract or technical/professional service to determine correct withholding obligation.
TDS depends on whether payments are for works contracts or for professional/technical services: integrated execution, labour and physical work (erection, fabrication, dismantling) under a single contract attract Section 194C, while separate orders or agreements for supervisory, professional or technical services attract Section 194J; parties should segregate or allocate contracts and consideration to identify the dominant component for correct withholding.