is tax is to be deducted(Indian Income tax Act) while making payment to supliers of stone pillers?



Supply order was issued to the party to supply of 4000 survey pillers at site .Is tax is to be deducted while making payment to the party?

is tax is to be deducted(Indian Income tax Act) while making payment to supliers of stone pillers?
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3 Replies to “is tax is to be deducted(Indian Income tax Act) while making payment to supliers of stone pillers?”

  1. No, it is applicable only when there is any labour work directly provided by the contractor.
    As per Sec 194 C, the payment to contractor shall be made after deducting Tax @ 2%.
    In supply there is no contract for labour charges.
    hence no TDS is applicable.


  2. This transaction is a supply transaction which does not include labor related supply because the supply is made buyers site and labor work is not carried out there.

    Further transportation charges if reimbursed at actual than TDS will not be applicable to that part also


  3. If this is part of purchase and you are getting tax invoice/retail invoice in that case no TDS. On the other hand if any payment above 20000/= TDS will be charged & deducted while making making payment to your supplier and will be automatically under contractor category. @2% will be charged in case of pvt. Ltd.co. and in case of individual [email protected]% .





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