Tds

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 February 2015 Dear all.
i had given construction construction contract.with materials. but now the contract or has given me bill. details are mention below.

contract amount was. 300000
Vat 5% 15000
Service tax 12.36% 14832

Total bill amount 329832

My exact query is. they have charged 5% on total amount of contract which is 300000*5%
15000. and 12.36% service tax on 120000/- is this correct calculation. by contractor.

and now we would have to deduct the TDS also. should i deduct tds only contract amount 300000 or with include tds amount which is 315000/-
also let me know the section to deduct tds.

Hemant Kumar

Hemant Kumar (Expert)

03 February 2015 Dear anonymous the calculation is as follows

Contract Amount :- 300000
Services Portion :- 120000
Material Portion Should be :- 180000

TOtal bill Amount :- 300000
Vat @ 5% on 180000 :- 9000
ST @12.36% on 120000 :- 14832
Total Amount :- 323832

TDS Should be deducted only on Portion of Services + Service tax, u/s. 194C. Rate @1% if Individual and HUF, 2% Company and firm.

Querist : Anonymous

Querist : Anonymous (Querist)

03 February 2015 Dear sir
but of the ca has told me the tds should be deduct on service portion+vat amount not on service tax amount