Bill raised by service centre contains labour charges,and sp

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ashabhatia (Querist)
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30 May 2017 I am working in a company. We send our companys car for services in the showroom. The bill raised by service centre contains labour charges,and spare parts charges seperately but in single bill.

They charge service tax on labour charges.

Do we need to deduct the TDS on the Labour charges( including the Service Tax)charged by service centre, OR the TDS will not be deducted on this payment

Please advice

Thanks in advance

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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30 May 2017

TDS to be deducted on amount excluding service tax part
.

Refer this :
The CBDT has issued Circular No. 1/2014 dated 13.01.2014 pointing out that the Rajasthan High Court has taken the view in CIT(TDS) vs. Rajashthan Urban Infrastructure that if as per the terms of the agreement between the payer and the payee, the amount of service-tax is to be paid separately and was not included in the fees for professional services or technical services, no TDS is required to be made on the service-tax component u/s 194J of the Act. Pursuant thereto, the CBDT has decided in exercise of powers u/s 119 that wherever the terms of the agreement/ contract between the payer and the payee, the service tax component comprised in the amount is indicated separately, tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without including such service tax component. Complete notification may be seen from below link-- https://law.incometaxindia.gov.in/DIT/Circulars.aspx

ashabhatia

ashabhatia (Querist)
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31 May 2017 my question is not abt service tax inclusive or exclusive with subject ,it is abt the amount of labour charge is rs.21120 and service tax on it +some amt of parts which change in car i.e rs.13140/-and vat aplicable an parts amtount total value of bill is 39827/- .whether tds deduct only on labour amt or on parts amt including vat and excluding service tax. pls reply.
thanks and regards for ur concern.

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