28 June 2014
company has received following invoice from its contractor.
Material =2,00,000 VAT @5% = 20,000 Labour charges =50,000 ST @ 12.36% =6180 Total Amount =2,76,180
How much TDS would be deducted as per section 194 C. Service provider is company. if tds on material is not deducted then please refer section or subsection under section 194 C.
29 June 2014
As Invoice clearly mentions the value of material . . TDS applicable under 194C on the invoice value excluding the value of material. . i.e, TDS only on 50,000 . . Section Reference:
194C Subsection 3
Read along with sub-clause (e) of clause (iv) of the Explanation.
CAclubindia
