TDS and capitalisation

This query is : Resolved

SSA JI (Querist)
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20 February 2008
1)How we will deduct TDS on a composite bill of supply and service : -Where supply and services within bill are not biforcated -Where supply and services within bill are biforcated

2)How will we capitalised Insurance,registration fee and accessories expenses of a new vehicle which are not included in the original bill and the bill date are different.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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21 February 2008 1)U/s 194C(1), if it is a composit contract, which includes labour TDS is applicable for the entire amount, notwithstanding any bifurcation.
2)The registration charges, the accessories purchased for fitment and the first insurance will have to be debited to the vehicle account concerned, notwithstanding they are covered by separate bills.