Shamita (Learner) (410 Points)
25 July 2009Our CO. is sending cloth for dyeing to another CO. Now the bill we receive from the dyeing unit includes 60% material, on which they charge VAT. Now on which amt. TDS is to be deducted. On the total amount of the bill i.e. including VAT. or on the amt. excluding VAT or on the 40% of the amount (the amt on which no VAT is charged)
sandeepverma
(don't make exuse for study)
(304 Points)
Replied 25 July 2009
tds should be deduct on gross amount of bill under contract 194 c
CA ravi kisore
(Assistant Manager Finance)
(54 Points)
Replied 26 July 2009
if they provide u with a consolidated bill without bifurcating those two amounts then we should deduct on the gross amount else tds should be deducted on the 40% part of the bill u/s 194C bcoz on purchases there will not be any TDS
CAclubindia
