Hello Frds... This problem arose during the course of audit of one of the famous hotel ......The contractor submitted the bill of amount Rs 845000 and specifically mention that 80% of the above is material cost and rest 20% is service charges and also Charge VAt on such 80% amount related to material and charge service tax on Such 20% amout which is its service charges. ...on what amout Tds shoud be deducted ..... lets take imaginary figs... bill amount -- 845000 Add: VAT(12.5% of 80% of 845000) = 84500 Add: Service Tax (10.3% of 20% of 845000) = 17407 -------------------------------- total amount 946907
tds on wt amount...!!
Ankur Agrawal (CS, CA Final) (239 Points)
19 March 2009
CAclubindia
