A Co. raises invoice for services to Customer as follows: Billing for service provided 100.00 VAT @ 4% 4.00 Total 104.00 Service Tax @10.3% 10.30 Gross Total 114.30
Now, customer deducts TDS and TDS on VAT seperately. My query is: Customer deducts TDS on VAT on Rs.114.30, is it correct?
07 August 2011
You have not mentioned about 'under which Section 194C..194J etc.'. The Crux of TDS is Read the Section carefully...if 'Sum paid or credited' word is Given then 114.30 will be considered. if word 'Income paid or credited' is used in the section then 100/- will be considered to amount for computing TDS. CA Manish J. Agrawal [S.T.S., B.Com, DISA, DIRM, SAP(FI-CO), NCFM-II, Service Tax(e-L), Transfer Pricing(e-L)]
CAclubindia
