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TDS liability on VAT invoice

Praveen Gupta (15 Points)

28 November 2009

Dear Sir,

Pl advice us is there any liability to deduct TDS on VAT invoices...

Pl let us know if you need any information form us in this regard.

Waiting your reply..

Thanks & regards

CA.Praveen Gupta

9718715456

fcapkg @ yahoo.com

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8 Replies

Max Payne (employed) (2569 Points)
Replied 28 November 2009

No need to deduct tax at source for purchases, however, if the VAT is for a works contract, you have to deduct TDS U/s 194C on the total invoice amount

So as of now dont deduct TDS.

1 Like

(Guest)

No need to deduct tax at source

CA VINAY BANSAL (In job with KPMG) (289 Points)
Replied 29 November 2009

tDS is made only on service type contracts (not for sale or purchase). Service type means commission, brokerage, contracts etc.............

Krutesh Patel (ACA) (727 Points)
Replied 29 November 2009

No TDS liability on purchase of material. It is only in respect of purchase of services.

Amol Gopal Kabra (CA,CS,DISA) (Practicing CA) (8539 Points)
Replied 29 November 2009

VAT is not a criteria to determine the TDS Liability..

TDS Liability shall be determined on the basis of its provisions under the relevant sections of Income Tax Act. So, if the expenditure comes under the purview of the given sections, then TDS has to be made. Unless no. So it wont matter whether VAT has been levied on the invoice or not.

Regards,

CA Amol G. Kabra

neeraj sharma (EMPLOYEE) (22 Points)
Replied 29 November 2009

there is a seprate provision under vat for TDS under rule no 59 of the DVAT @ 2% . for which you ave to make a seprate declaration under DVAT . you have to make an application under form no 45 of DVAT.

shraddha (Student CA IPC / IPCC) (27 Points)
Replied 03 August 2016

Dear Sir/Madam,

we have bill on computer repaires & maintainance which include service tax please help me whether to deduct tds on this bill or not, as on purchase of licience tds is not deducted as it is capitalised,

party raising the bill is asking not to deduct tds as they are providing stamp of non deduction of tds .

Amount of per bill is approx. 4000/- yearly amt is above 70000/-, we have a contract with the party.