i have a private limited co in mumbai which sells ready mix concrete to diff industries.now there is a client( pvt ltd co) which buys concrete from me , they also avail pumping services when they take concrete mix from us . they are saying that if we make consolidated bill for both sale of concrete and pumping charges, we will deducted tds on gross amount. is it right? what if i can make a seperate bill for pumping charges? but can they deduct tds in that case? if so how much? and rate. i am also not subject to service tax since below limit of 10 lacs. is there a limit where only over the limit , tds can be deducted for such services.
So you have to raise separate invoice for pumping service so that TDS will be made only on Pumping service you are providing.
He will deduct tax if the sigle bill for Pumping service is more than Rs. 20000/- or Total during the year Exceeds Rs. 50000/- and at 2%(+SC10%+EC3%) i.e. Total 2.266%. and if SC will not be applicable to you than it will be only 2.06%