Application of tds

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Paromita Mitra (Querist)

11 February 2016 Have a query on what amount TDS will be us 194C under the following scenario - Paper Cost - 189000.00 labour charges for 47250.00 Vat on paper 5%. 9450.00 total bill 245700.00 my question is in the above situation what amount TDS under income tax act u/s 194c will be deducted. pls advice

HIREN

HIREN (Expert)

11 February 2016 TDS will be applicable @ 1% on 47250/- if supplier is Individual / HUF and

TDS will be applicable @ 2% on 47250/- if supplier is Company / Firm / Co-operative Soc / Local Authority.

It is assumed that labour charges does not include Service Tax.

It is also advisable to obtain separate invoice for Paper cost & Labour charges.

Paromita Mitra

Paromita Mitra (Querist)

15 February 2016 Thank you Sir for your inputs. Have one query if the bills are not separate and vendor have charged both material and labour cost separately with Vat on material. kindly advise in this situation we deduct tax only on the labour cost.

Paromita Mitra

Paromita Mitra (Querist)

15 February 2016 Thank you Sir for your inputs.

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