TDS Deduction

This query is : Resolved

Yajuvendra Rawat (Querist)
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09 December 2009 Dear Sir’s,

I have received a bill on which T.D.S. is to be deducted. The bill is dtd. 09.10.2009
Bill Details are :-

1.Towards preventive maintenance & upkeep of renewable energydevice/wind mills including labour & materials.
Rs. 21,001.05
2.Towards Breakdown repairs of renewable energy devices/ wind mills including labour & materials. Rs. 48,809.25
Total Charges Rs. 69,810.30
Service Tax @ 10.30% Rs. 7,190.46
Total Amt Rs. 77,000.76

Value Added Tax @ 12.5% on 60% of the value
(As per Notification. No. STR.1506/CR-38/
Taxation-1 Dtd. 08.09.2006) Rs. 5,235.77
Total bill Rs. 82,236.55

As per my knowledge T.D.S. should be deducted at 40% of 69,810.30+ Service
Tax. Since 60% of the amount is considered for VAT 40% can be considered as
service. Please guide me if I am wrong.

C.A.Javid Patel

C.A.Javid Patel (Expert)
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09 December 2009 No TDS is to be deducted on full amount. That 60 & 40 ratio only for vat calculation purpose.