Tds

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Tapas (Querist)
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23 July 2014 I am supplying foods for patients to a govt. hospital. The Treasury deducting 4% TDS when releasing my payment. My Question: what % has to be deduct by treasury? Plz provide the circular of the TDS on foods supply to medical patients. I will be obliged.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 July 2014 TDS has to be made under section 194C which is 2%, if you are not an individual. If you are an individual it is 1% only.

Tapas

Tapas (Querist)
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25 July 2014 Thank you so much. It is U/c 194C Income Tax Act, 1% TDS. I will show the section to the Treasury officers to deduct 1% only.

Tapas

Tapas (Querist)
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25 July 2014 Again the Treasury is asking me to provide them VAT clearance certificate. I could not understand what VAT clearance certificate to present them for food supply to medical patient. Last year no one asked me about the VAT certificate. Please inform me :
1) What is VAT clearance certificate ?
2) What is the % VAT ?
3) Why they deduct ?
4) Who will give the certificate ?
5) Where I get It?

Kindly suggest me on priority so that i will thankful to you.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 July 2014 Normally VAT is not applicable for food supply to hospitals. Kindly check the applicability in your state. VAT is Value Added Tax. You consult a tax consultant of your state.