Tds on work contract

This query is : Resolved

Rajesh (Querist)
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14 September 2011
Dear Friend

Can any one clarify the following

let assume that we are in Actual Deduction Scheme & Contractor has submitted bill

ie 75000 for Material
25000 for Labour Portion
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Vat 12.5% 9375
Ser Tax 10.3% 966
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Total 1,10,341
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on which Amount i have to deduct IT-TDS & WCT -Tds
please mail me Rajeshh_2008@yahoo.com

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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14 September 2011 Income tax TDS need to be deducted on Labour portion plus service tax (25000+966)

WCT tds Can be deducted on total value of bill (but check with Local WCT act)

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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14 September 2011 1)If material is purchsed other than from the awarder, no need to deduct TDS under section 194C because it is outside 'work'as defined in the said section.
2) Regarding WCT deduction as per VAT law, Remesh ji's view may be followed.

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