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
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.
CAclubindia
