My client got invoice from client for "Hoarding installations". Description of invoices says 679 squqre ft,and 3 numbers of items and 500sqt etc....and he VAT on whole amount i.g 50753 & 14% vat =57858.
Now my question is 1) can he charge VAT on full amount 2) if he charged like that as CA what is our advice to clinet as i have to make payment now 3) what about TDS implications whether 194C comes or not.(Clinet telling as he charged VAT we could't charge TDS) 4) If i process that invoices(for 57858) without TDS is there ant statutory compleances wrong..
26 April 2012
As per your data you have purchase 3 Hoarding with installation
If suppliers has issue invoice that it will be consider as purchase even if its includes installation charges on which he is charging VAT also so hoarding suppliers is selling hoarding per sq.ft including installation charges in that case query reply is as below
1) if above condition is right he can charge VAT on full amount 2) you can pay by a/c payee cheque and not in cash morethan Rs. 20,000/-in a single day 3) if its a purchase not contract then it will be not under tds rules so no deduction 4) as above No.3
CAclubindia
