TDS Query

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 May 2011 Dear Sir,s
Requested to help or resolve the query for taxes(Sales, TDS) as per below mention: -
Suppose there are two vendors A & B
A have restaurants (FOOD) business at different different palaces.
B have a mall and invites to A to open the restaurant in B’s Mall in Delhi
Suppose A raised a bill for the whole day sale on daily basis as per below : -
Total sales : - Rs. 1000.00
VAT on sales : - 120.00
Gross Sales : - 1120.00

But B charges 10% margin on above amount sales from the customers as per below : -
Total Sales : - Rs. 1000.00
Add Margin : - 100.00 (@10%)
Net sales : - 1100.00
Vat on sales : - 137.50 (@12.5%)
Gross sales : - 1237.50 for B.

In the above case is there any liability for TDS For A. (Because A sales food material on A’s brand name at B’s Palace and B charges 10% margin amount.

Please revert & mail on lv_kv@yahoo.co.in.

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
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02 May 2011 yes for the 10% TDS is applicable as per 194H

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Querist : Anonymous

Querist : Anonymous (Querist)

05 May 2011 The vendor is charging the difference amount as margin money , so would like to know it is also applicable on margin money amount ?

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CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
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06 May 2011 Sorry for the wrong information,
Actually that 10% is treated as Rent as per 194I hence TDS should be deducted at the rate of 10% if the payment exceeds Rs 1,80,000 durig the year.

Querist : Anonymous

Querist : Anonymous (Querist)

10 May 2011 THANK U SO MUCH SIR,

Please also advice for below mention : -

We are raising bill to vendor for Rs. 100.00(Imagin), but vendor sales to the same to the customers for 110.00 by his own name & till no.

So confusion is this that we are raising bill for rs. 100.00 and getting rs.100.00 from the vendor.

but vendor uses his own till no. & bill but equipments & staff's people are ours.

So please clarify in that case too TDS is applicable.

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
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10 May 2011 In this situation TDS is not applicable because it is treated as Sales and Purchase in normal course of business .
But in case if you have any Contract for supply of Staff then for that TDS applicable Under section 194C as a contract