29 June 2012
OUR CLIENT HAVE MADE A CONTRACT WITH ABC LTD MAINTAINANCE OF PLANT. THE CONTRACT INCLUDES CONSUMABLE PARTS ALSO. ABC LTD GIVES THE BILL IN FOLLOWING FORMAT.
CONTRACT CHARGES------------------362653 SERVIVE TAX@12.36% ---------------44825 VAT @5% ON 80% ON TOTAL CHARGES---14506 TOTAL BILL AMT--------------------421983
WHETHER TDS WILL BE DECUCTED ON THIS BILL OR NOT ? IF YES THEN ON WHICH AMOUNT.
PLEASE QUOTE RELEVANT PROVISION, CIRCULARS WITH YOUE ANS.