CA. Ramesh Chand (Manager- Accounts & Taxation) (437 Points)
22 August 2015Dear Sir/Ma'am,
Please suggest how to deduct TDS under section 194C:
1. Contract with vendor/ party is for fixed rate to repair a jig (say Rs. 300 for repair a jig).
2. Vendor/ party bifurcate material and labour charges in their invoice for payment of vat on material used during repair (simply 80% of total contracted price).
now the issue arise is how to deduct TDS
1. whether on contracted price (i.e Rs. 300)
2. whether on labour charges only, mentioned in invoice.
Please suggest...
Deepak Tapse
(Accounts Manager - Taxation)
(1771 Points)
Replied 22 August 2015
If labour charges shown seperately, then TDS is to be deducted only on labour charges
Lalit Sangani
(M.Com. Asst. Manager Account)
(736 Points)
Replied 26 August 2015
Dear Deepak ji,
if labour charges not mentioned saprately then on which amount tds to be deducted.
Thanks
Deepak Tapse
(Accounts Manager - Taxation)
(1771 Points)
Replied 27 August 2015
If labout not mentioned seperately, then TDS will be deducted on entrie amount
Kiran. S
(CTO)
(745 Points)
Replied 27 August 2015
If VAT is paid on 80% of total contract amt then TDs should be cut on labour amt 20% of contract amt. Have they added the service tax on 20% part.?
CA. Ramesh Chand
(Manager- Accounts & Taxation)
(437 Points)
Replied 27 August 2015
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