i want to know the amount on which tax will be deducted, invoice is raised by partenership firm
Detail of invoice
material charges Rs 15000
Labour charges Rs 28000
Total Rs 43000
whether tax will be deducted on whole amount or labour charges
Saurabh Toshniwal (ca final) (2363 Points)
16 February 2013i want to know the amount on which tax will be deducted, invoice is raised by partenership firm
Detail of invoice
material charges Rs 15000
Labour charges Rs 28000
Total Rs 43000
whether tax will be deducted on whole amount or labour charges
Dhawal Mohnot
(Practicing)
(449 Points)
Replied 16 February 2013
from details given above, Relevant section can be 194C, which says that, any payment in excess of Rs.30,000/- per transaction or Rs.75,000/- in aggregate during a year will attract deduction of TDS.
In given scenario no TDS required to be deducted on material charges and since labour charges is less than 30,000 per transaction, NO TDS deduction required. (Kindly check the aggregate value as well).
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