21 February 2008
Hello EXPERTS, ABC Pvt Ltd place a order for supply of kitchen equipment. As per payment terms of P.O. Ex work amt 2987010 Exice duty 149351
sub total 3136361
sale tax 3% on 3136361 94091 Installation charges (Included)
Order Value 3230452
Installation of system will be carried out at cost included in above costso it is composite contract.
Now my query is that wether TDS will be done as it is composite order including installation i.e TDS will be done OR TDS will not be done as Sales tax is leived on sub total amount
21 February 2008
Mr Jitendar, the question is debatable. The Income tax dept may question for non deduction of TDS as because the word ".....including installation". Whether sales tax was charged on entire bill or not will not be considered. The point of argument with I Tax dept. that sales tax was charged on entire bill amount and so no TDS deducted will not be accepted on the grounds that as the bifurcation of the material amount and installation amount was not possible, sales tax was charged on entire bill amount. As such one should deduct TDS.
21 February 2008
as per you calculation instalation charges are not seperatly charged
2987010 excie 149351 --------- 3136361 CST 3% 94091 ----------- 3230452 total amount instaltion charges are not seperately shown so tds prvision is not applicble
CAclubindia
