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Work contract - tds

anonymous (Accounts) (101 Points)

11 April 2014

HIII

I HAVE RECEIVED AN ANNUAL REPAIR & MAINTENANCE CHARGES BILL FOR AIR CONDITIONERS. HAVING SUCH CLASSIFICATION

AMOUNT- 61619

SERVICE TAX-80% 61619*80/100*12.36/100 = 6093

VAT-70% 61619*70/100*12.5/100=5391

TOTAL INVOICE AMOUNT =73103

MY CA IS SAYING NO TDS WILL BE DEDUCTED WHEREAS I STILL FEELS THAT TDS U/S 194C NEEDS TO BE DEDUCTED . PLEASE REPLY WITH THE LINK .

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8 Replies

PARV (TAX ASSISTANT.) (202 Points)
Replied 11 April 2014

CAN ANY PROVIDE ME, ARTICLE ON WORK CONTRACT RELATED TO ELECTRICITY.

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CS and ACMA Raju lakhani (Working in Public Co.) (340 Points)
Replied 12 April 2014

Tds will be deducted at flat rate of 1% or 2% if work contract related to sales or purchase of party...and tds on work contract(VAT) also get deducted and claim input of same from output

chetan (Ca article) (237 Points)
Replied 12 April 2014

Ti's clear when contract for for repairs and maintenance than tds @ 2% when company and 1% for other than company.But tds cut on Principal amt + vat but not on service tax

chetan (Ca article) (237 Points)
Replied 12 April 2014

1% for individuals and HUF AND 2% for other than both of tham

JAINENDRA JAIN (ACS/CA) (1668 Points)
Replied 12 April 2014

tds will be applicable on amount excluding service tax provided value and tax amount are shown seperately.

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CS V Periwal (CS) (80 Points)
Replied 12 April 2014

Dear Mr./Miss Anonymous,

It is very clear that the bill exceeds the threshold limit of Rs. 30000 an year. Thus TDS has to be deducted.

Second very important point is that if you are an individual (not carrying on any business ) and recieved this bill on your name no TDS required to be deducted.