21 December 2013
We have entered into contract for fabrication and erection .In the instant contract main raw material that is steel is provided by us but nut bolt and fastener are purchased and used by contractor in erection work.
Now contractor has raised invoice in which he has separately claimed the value of goods along with VAT thereon. And claimed Service tax on balance value that is total value less value of goods used in erection work.It is also to be noted that instant contract is for lump sum value and rate of nut and bolts supplied by contractor is mentioned in billing break up.
Now our question is that for tds under section which value is to be considered whether it is Grooss value less value of goods plus service tax thereon else payment made including service and VAT thereon.
Kindly clarify????
CAclubindia
