26 November 2012
I Have Invoice Of A Contractor Of Rs. 1,00,000.00. In The Invoice Labour Is 56,000.00 & Raw Material Use By The Contractor Is 44,000.00.
Should I Deduct Tds On Total Amount Or It Will be Deducted On 56,000.00 ?
26 November 2012
If it is a composite contract. then deduct on 1 lakh. If the contract (Purchase order) suggests that there are 2 elements... one being supply of material and second providing labour charges... then tds will be on labour charges only i.e. 56000 in your case.
CAclubindia
