13 February 2014
We are private company based in mumbai. we have given contract for construction of 1st floor on our gala to contractor (including material + Labour). Contractor gave us single bill for 50,00,00/- without vat & Service tax.Is tds applicable on above pmt as per Income tax? also advice the implication under VAT act(VAT TDS).
13 February 2014
TDS under 194 C is applicable subject to applicability 194 C i.e single payment more than 35 k or 75 k in whole year.
Even service tax also payable under Reverse Charge Mechanism if Service Provider is Individual, HUF, PF and AOP as it is falls under the Works Contract services @ 50% of service tax liability.
13 February 2014
but in bill no labour charges are separately charged. so TDS is to be deducted on whole amt(50 lac)? also no service tax and vat is charged in bill so on what amt we have to pay service tax? also indicate any provision of Mahavat applicable to same.
CAclubindia
