Deduction of TDS

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CA. ALOK SHARMA (Querist)

24 December 2010 Sir,
How can an auditor (myself an Article assistant) identify nature of bill in following case.

Sometime I come across a bill which contains an element of purchase and also rendering of services (for e.g. a bill of installation of computers in a company which includes purchase of computers also rendering of technical services i.e. installation services on which ST is levied.

My problem is how to identify whether it is a bill on which TDS is deducted only on services u/s 194J or on total amount of bill u/s 194C.

Thanks
ALOK SHARMA
CA FINAL STUDENT

Note-1 I dont want to ask manangment the nature of bill. i just have bill.

shrikant

shrikant (Expert)

25 December 2010 Dear Alok

It's simple as it's composite bill, hence you need to bifurgate on some rational basic, In your case you can reverse calculate the amount chargeable to
TDS i.e. Service tax amount/10.3%.

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