10 March 2015
Dear Sir, Please read my querry carefully and answer it...
If my company had sent a car for repairing to a mechanic.. and that mechanic had charged material and labour charges in the same bill including the vat amount..
now what should i do as it is a service/repairing for me..
so should i deduct tds or not ???
i think i must go for deduction of tds on safer side else it wil b violation of income tax act that i had paid labour charges without deducting tds..???
10 March 2015
Please refer Section 194C(3)(i). TDS to be deducted on value excluding the value of material, if such value is mentioned separately in the invoice and therefore no TDS on VAT which is charged on Material.
VAT can not be charged on Labour charges. If the VAT has been charged on total mount then it means there is no charge in respdct of Labour/Service. Treat entire Invoice towards material.
11 March 2015
Tushar ji i asked you few questions which you did not reply. Your answer lies in the reply of my question.
Now coming to your question.
If mechanic did the repairing work and also supplied material then he will never charge VAT on Labour charges. I hope you agree. Labour charges is subject to service tax not VAT.
Dear Ankit please see on which amount VAT is charged. What is written in bill besides the amount on which VAT is charged.
30 October 2015
Dear Ankit Please refer Section 194C(3)(i). TDS to be deducted on value excluding the value of material, if such value is mentioned separately in the invoice and therefore no TDS on VAT which is charged on Material.
TDS to be deducted on whole of the invoice value, if the value of material is not mentioned separately in the invoice.
Hope it will be clear now. We say TDS is not applicable on purchase. So is supply of material not purchase when the same is mentioned separately in Invoice?
30 October 2015
but what if I had given a single service order for repairing of mah vehicle... so in that case service order will not b of any importance.. the bill will be important...
CAclubindia
