08 July 2015
Dear Sir, "Person" is giving cement to a manufacturer of readymix concrete. Manufacturer is applying VAT on the other materials which it adds for manufacturing of readymix concrete. Readymix concrete is produced as per the specifications given by the "Person" who is giving the cement. My query is, whether TDS will be deducted on payment to the concrete manufacturer?
09 July 2015
Please refer Section 194C(3)(i). TDS to be deducted on value excluding the value of material, if such value is mentioned separately in the invoice and therefore no TDS on VAT which is charged on Material.
TDS to be deducted on whole of the invoice value, if the value of material is not mentioned separately in the invoice.
CAclubindia
