Tds on vat portion of technical service

This query is : Resolved

Rajesh Kumar Chotia (Querist)
Follow

15 December 2014 Bill of Software Purchase

Basic 1,00,000
Service tax 12,360
Total 1,12,360
Vat 5% 5,618
Total 1,17,978

TDS is to be deducted on (basic) or (basic+ vat) ?????? Give appropriate sporting.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

15 December 2014 Software purchase TDS apply in the criteria

Incase you purchased readymade software available at market the no TDS apply

Incase software developed specifically for your company and supplied then TDS will apply

TDS on service tax component not apply if your agreement/contract has that service tax clause, otherwise TDS will apply gross value of bill.

Rajesh Kumar Chotia

Rajesh Kumar Chotia (Querist)
Follow

16 December 2014 what about Vat portion?

Upgrade to CAclubindia Pro. Subscribe Now!

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

16 December 2014 TDS applicable on VAT portion when the TDS criteria meets your software purchase under TDS

Rajesh Kumar Chotia

Rajesh Kumar Chotia (Querist)
Follow

17 December 2014 there is any circular?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

17 December 2014 there is a circular for non deduction of tds on servie tax portion which actually means that in invoice if there is vat and servcie tax then deduct tds on all mounts excluding service tax, hence vat is covered Refer Notification no 1/2014