14 December 2015
Dear All Sirs I am very confussion about deduction of vat 1) My vendor is supplying me a material & Labour charges Invoice different different, Vat Invoice Total is 45000/- and Labour Invoice total 35000/ Gross Total is 80000/- Now my question is Can I deduct tds 2% on 80,000/- Or Can I deduct Tds 1% on 35000/- Can I wait when total vat Invoice become to 75000/- (Now it is 45000)
Can I wait when total vat Invoice become to 75000/- (Now it is 35000) Please suggest me
Guest
Guest
(Expert)
14 December 2015
You need not to deduct TDS on Material amount i.e 45000..So you have to deduct tds on labour charges only.The threshold limit to be seen is 30000 on single invoice and 75000 aggregate in the year.But in your case it is the invoice exceeding 30000 so you have to deduct TDS..Coming to the rate if the vendor is individual then rate would be 1% otherwise it is 2%..
14 December 2015
Where single payment does not exceed Rs. 30,000 or aggregate payment does not exceed Rs. 75,000 [First proviso to Sec. 194C(3)]: No deduction shall be made from the amount of any sum credited or paid or is likely to be credited or paid to the account of or to the contractor or sub-contractor, if such sum does not exceed Rs. 30,000.
In your case Bill Amount Exceed Rs.30000/- you have to make payment 1% on rs.35000/-if it is proprietary concern 2% other than proprietary i.e. Firm/ Company
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