TDS

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akbar (Querist)
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18 November 2009

Sir,

Kindly guide tds on what amount to be deduced if payment made for hire charges but party raise bill charged vat on hire charges now the question arise whether tds has been deducted on incluidng vat amount of whole bill or without considering vat - this case is arise in Andhara pradesh this for your ready reference

Pls provide solution of above query at the earliest

Yours
Akbar

chetan soni

chetan soni (Expert)
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24 November 2009 TDS needs to be deducted on gross amount i.e inclusive of VAT. This will be coming u/s 194I i.e TDS on rent paid. The applicable rates are if the amount paid is pertaining to property then the rate is 10% if the rent paid is for aquipment/machinery then the applicable rate is 2%.