Definition Of Work Under 194c
C carriage of goods and passengers by any mode of. As per section 194C TDS should be deducted by any person responsible for paying any sum to any resident hereafter in this section referred to as the contractor for carrying out any work including supply of labour for carrying out any work in pursuance of a contract between the contractor and a specified person shall at the time of credit of such sum to the account of the contractor or at the time of.
Tds On Payments To Contractors U S 194c Audit By Auditors
Clause iv of the Explanation of the section 194C defines work.
Definition of work under 194c. Meaning of work for the purpose of section is contained in clause iv of Explanation iv to section 194C 7 Work shall include. I The provisions of section 194C shall apply to all types of contracts for carrying out any work including transport contracts service contracts advertisement contracts broadcasting contracts telecasting contracts labour contracts material contracts and works contracts. Sub-clause e of this definition includes manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer within the definition.
To provide that in a contract manufacturing the raw material provided by the assessee or its associate shall fall within the purview of the work under Section 194C. As per Section 194C Any person responsible for paying any sum to any resident for carrying out any work including supply of labour for carrying out any work in pursuance of a contract between the contractor and a specified person shall at the time of credit of such sum to the account of the contractor or at the time of payment thereof in cash or by issue of a cheque or draft or by any. Section 194C deals with the provisions for tax deduction at source at the time of payment to contractorssub-contractors.
Such contractor or sub-contractor should be a resident in terms of section 6 of the IT. Section 194C provides that any person responsible for paying any sum to any resident for carrying out any work has an obligation to deduct tax at source on such payment. Thus the crux of the issue was whether the supply of products by third parties to the pharmaceutical company constituted work for the purposes of section 194C.
Therefore to bring clarity in the section and plug the leakage it is proposed to amend the definition of work under section 194C to provide that in a contract manufacturing the raw material provided by the assessee or its associate shall fall within the purview of the work under section 194C. The section provides that any person responsible for paying any sum to a resident for carrying out any work including supply of labour for carrying out any work in pursuance of a contract shall at the time of such credit or at the time of payment whichever is earlier deduct an amount equal to one per cent in. Section 194J and Explanation 2 to Section 91vii of the Act provides that fees for technical.
According to the Section 194C of the Income Tax Act any individual making a fee to a residential individual who carries out work as a contract between the specified individual and the resident contractor is obliged and required to deduct TDS Tax Deducted At Source. In this case a person may be any of the following entities. Basic Payments to contractor -Section 194C applies to a person who is responsible for paying any sum to a contractor or sub-contractor.
B broadcasting and telecasting including production of programmes for such broadcasting or telecasting. B Broadcasting and telecasting including production of programmes for such broadcasting or telecasting. Section 194C of the Act provides for the deduction of tax on payments made to contractors.
Section 194C of the Income Tax Act states that any person making payment to a resident person who is carrying out any work in terms of the contract between the specified person and the resident contractor is required to deduct TDS. This section says that any person who pays money to the resident contractor or subcontractor for carrying out any work including the supply of labor is required to deduct tax on such payment. The specified person mentioned above means the following The Central or State Government.
Definition of work has been amendment for the purpose of TDS under Section 194C. Explanation iv of Section 194C of the Act provides that work shall include broadcasting and telecasting including production of programmes for such broadcasting and telecasting. Under Section 194C of the Income Tax Act a person may be referred to as someone who enters into a contract with a contractor to carry out work in exchange for payment.
For the purposes of this section the expression work shall also include.
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