TDS to be made

This query is : Resolved

vijay (Querist)
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07 December 2010 Hello Sir

My company Purchased Networking cables and other IT related materials from a vendor and also vendor provided labour for the networking work to be done. The vendor gave a single bill in which material and labour was shown together , but seperately.

Our CA made a TDS of 10% on the whole amount of the bill. The vendor claims this is wrong and the TDS was to be made at 2% only on labour

Please guide me on this with case refernce if any if my CA is correct

S. Karthi

S. Karthi (Expert)
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07 December 2010 Yes, if labour charges shows separately in invoice. you should deducted tds on labour charges @ 2% to Companies & Firms and 1% for Invd. & HUF. us/ 194C.