Deduct TDS while making payment for a Tax Invoice (VAT Bill)

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S Mohammed (Querist)
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08 February 2009 I am a works Contractor...and my client had deducted TDS on the VAT invoice presented to them for the payment to a tune of Rs.4.40.000/- (They had deducted Rs.9971/- from this 4.4 Lakhs as TDS)

For the Informations of the Experts:

For this Works Contract i had given My client two separate invoices. ie., one for the VAT related invoice (For VAT Calculation)and the another for service related Invoice (For Service Tax Calculation).

Now Please advice me if the client is allowed to deduct TDS on the VAT TAX invoice Payments of Rs.4.40 Lakhs

Please Note: The Status of My client is a Limited Company and mine is a firm.

CA MEENAKSHI MANGLA

CA MEENAKSHI MANGLA (Expert)
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09 February 2009 if you have raised two seperate bills then tds will be deducted only on that bill in which service tax levied.

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Manish Thakkar

Manish Thakkar (Expert)
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19 April 2013 As VAT is lavied on the invoice means its contract of sales, as TDS is not applicable on contract of sales hence TDS not applicable on VAT invoice.

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S Mohammed

S Mohammed (Querist)
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07 March 2016 Thanks to Meenakshi & Manish

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