Jyothis (Article) (1127 Points)
06 February 2016Is works contract tds to be deducted from payment to be made to a contractor under VAT,on invoices where vat is charged for material portion & service tax on service portion.
Sonu
(Accountant)
(26 Points)
Replied 06 February 2016
If Service & Supply Are Seperate Then There Is no need for deduction of Wct.
Jyothis
(Article)
(1127 Points)
Replied 06 February 2016
CMC bill issued by a company-
Invoice total -Rs.1,09,750
Material charges-50,000+2500 vat
Service charge-50,000+7250 service tax.
Both are charged in a single invoice ....Since vat & service tax is charged seperately no need to deduct work contract tds....
What if no vat is charged & service tax charged....is it necessary to deduct work contract tds..again here also material charges &service portion can be segragated.
Vineet Aggarwal
(Accounts Officer)
(316 Points)
Replied 06 February 2016
if in invoice Material and Service charges are mentioned separate than that is not come in the defination of work contract
and if in Invoice there is no separate value in this just contract value mentioned where ST charges as per RCM than it is liablie to deduct work contract on Gross AMount
CAclubindia
