Dear Sir,
For example, I am a contractor, my sub contractor have give me 2 bills, one for materials cost used in work Rs.50 lacks, another for Labour cost for Rs.10 lacks. my query is should i deduct 1% TDS on both payment or only on labour cost that is Rs.10 lacks.?
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TDS on Works contract
Replies (9)
Over Total amount of Rs.60 lakhs.
in case of works contract there must be a birth of immovable property (labour + services)
yeah it will be composite 60laks
yeah it will be composite 60laks
1 % on Indivisual/HUF, Other 2%
in my opinion TDS to be deducted on only 10 lakhs
I also opine that, tax is deductible only on labour cost
but to be on safe side 2%
For works contract, the order placed is for a job, and not material and labour independently. So, the invoice itself is invalid. Get the correct invoice for works done and deduct TDS on full amount.
My actual idea is know where to keep the GOLD purchased by proprietor for personal use in tally(Under which Head). Gold(jewellery Purchased & used for personal use) Is not a fixed asset so the option is ruled out. Investments i suppose,not sure... can anbody tell me the proper head of account it should be placed in tally.
If its only Business books of account, any personal purchases are debited to proprietor's capital account.
If combined, then its under Investment.
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