Our company has engaged a ABC company to keep the boiler(product) in working condition. for this purpose, ABC company has sent engineers to the site done some repair and maintance and raised a bill for the visit of Engg @ Rs. 12,800 per day and also charged service tax on it. our Company is deducting TDS @ 2% on the gross amount.
My question is whether TDS deducted by our Company is as per provivion or Should TDS be deducted @ 10% as technical fees
one more thing i would like to ask that our company is paying freight to the transporter and also paying service tax @ 25% under GTA. is abatement reduced to 70% or still it is 75%
12 June 2015
In your query you have stated that Visit of Engineer Rs 12800 and Service Tax on that. So there is no material involved as per bill. Just because it is is contract for repair and maintenance main nature of work, which is technical service, can not be overlooked. TDS to be deducted u/s 194J @ 10%.
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