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Tds on taxes

ajay (article) (28 Points)

27 September 2016

if tds deducted on sale price +service tax and vat , will the whole amount is considered as income

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CA Raj Doshi (Practising CA) (8723 Points)
Replied 27 September 2016

No. The whole amount will not be counted as income.

Mukesh Kumar (Accounts Manager) (1466 Points)
Replied 27 September 2016

1. GENERALY TDS SHOULD BE DEDUCTE ONLY ON SALE PRICE . NOT SERVICE TAX AND VAT AMOUNT

IF ANYONE DEDUCTE TDS FROM WHOLE AMOUNT , YOU SHOULD ASK TO TDS DEDUCTE ONLY SALE PRICE .

2. SECONDLY YOUR INOCME ONLY SALE PRICE AMOUNT NOT SERVIE TAX AND VAT AMOUNT ONLU WHEN , BUT CONDITION IS THAT YOU MUST BE CHARGE SPERATALLY S.T. AND VAT IN INVOICE OTHERWISE THE WHOLE AMOUNT IS YOUR INCOME

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CA Tanvi Sheth (Consultant) (232 Points)
Replied 27 September 2016

The matter resembles to Works Contract, and so if the invoice generated has clear bifurcation of Material and labour, then no TDS on Material

But if the invoice is for the complete contract then TDSis to be made on whole of the invoice amount.

If we read the section 194C , it say'' Any sum '' which can implies inclusion of taxes sometimes. while in other cases such as interest, rent, commision, etc there is specific mention as ''Amount as rent, interest, commision''

So Please consider the nature of exp and then decide whether deduction is correct or not.

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