TDS on material Supply
This query is : Resolved
28 September 2010
Dear All,
My vendor had raised a bill of Rs 2586311/- against interior fit out for developing a retail store. The bill had been charges in the following way.
Total- 23,00,088
67 % of the total amount- 15,41,059
Vat @ 13.5% on 67%- 2,08,043
33 % of the total amount- 7,59,029
Service Tax @ 10.3% on 33%- 78,180
Grand total- 25,86,311
There are two query on my in the above case.
1. Under which section the TDS will be applicable (194 C or 194 J)
2. The TDS will be deducted on which amount (On Labour job value or gross value).
Kindly give me the case law for the above answer, accordingly i will update my vendor.
Dear All,
My vendor had raised a bill of Rs 2586311/- against interior fit out for developing a retail store. The bill had been charges in the following way.
Total- 23,00,088
67 % of the total amount- 15,41,059
Vat @ 13.5% on 67%- 2,08,043
33 % of the total amount- 7,59,029
Service Tax @ 10.3% on 33%- 78,180
Grand total- 25,86,311
There are two query on my in the above case.
1. Under which section the TDS will be applicable (194 C or 194 J)
2. The TDS will be deducted on which amount (On Labour job value or gross value).
Kindly give me the case law for the above answer, accordingly i will update my vendor.
28 September 2010
Interior decorator service comes under the category of professional services, hence 194J would be applicable.
TDS should be made on gross amount i.e. Rs. 2586311
TDS should be made on gross amount i.e. Rs. 2586311
29 September 2010
Hi,
TDS will be deducted on labour ,Not on gross value.VAT bill will not attract TDS
TDS will be deducted on labour ,Not on gross value.VAT bill will not attract TDS
30 September 2010
From the query, it is clear that the transaction is composite contract for interior decoration work.
Service Tax is applied on abated amount i.e. 33% only.
TDS would be applicable on Gross bill amount payable to the Contractor.
Regards
K.L.Paliwal
Service Tax is applied on abated amount i.e. 33% only.
TDS would be applicable on Gross bill amount payable to the Contractor.
Regards
K.L.Paliwal
30 September 2010
It appears from the query, the vendor is taking abatement under notification 1/2006: which is not applicable for completeion and finishing services
Further interior decorator category is not allowed abatement of 67% as claimed in bill
Either the vendor should show a material sale and pay tax on balance (labour) OR bill under works contract under composition ( subject to conditions fulfilling works contract) OR pay tax @ 10.30%
Further interior decorator category is not allowed abatement of 67% as claimed in bill
Either the vendor should show a material sale and pay tax on balance (labour) OR bill under works contract under composition ( subject to conditions fulfilling works contract) OR pay tax @ 10.30%
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Manual Rectification through AO
- IT Return filed defective u/s 139 (9)
- Fixed Deposit Claim Relinquishment by the Nominee
- Defective Return - Tds on advance
- ITR 6 Schedule CFL and UD Issues
- Not a CA , can we prepare balance sheet
- FREELANCING ACCOUNTANT
- TDS RATE ON RENT PAID TO NRI
- Income Type for interest from government bonds
- TCS ON SOFTWARE SALES
- PAYMENT TO OPEN AI AND ENVATO ELEMENT
- From 15CA for remittance by domestic travel agent by to Foreign Destination Management Company.
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
Trending Online Classes
CAclubindia
