company has received follwoing invoice from its contractor
labour charge 1000
service email@example.com 103
how tax should be deducted assuming that single as well as annual limits is satisfied.
Deduct TDS u/s 194C on total Bill amount. Since separate bill for material is not given.
Individual/HUF @ 1%
But it is better if the contractor provides separate bill for material and and service.
If the material is not purchased from the awarder,TDS provisions will not attract for the said transaction by virtue of the substituted section 194C w.e.f 1/10/2009.