Liablity of Tds on the Composite bill
This query is : Resolved
02 September 2008
Hello
In works contract service, a person( contractor) constructs a building for Mr.A wherein material ( Rs 10,000)and labour( Rs.6,000) was supplided by the contractor for construction of building .
So if Contractor issues a bill( i.e one bill) for his service in which he bifercates his expences of material and labour seperately . On which amount T.D.S will be deducted
a) On Rs. 16,000 (i.e total value of bill)
b) On Rs 6,000 ( only labour)
Thx
Shweta
Hello
In works contract service, a person( contractor) constructs a building for Mr.A wherein material ( Rs 10,000)and labour( Rs.6,000) was supplided by the contractor for construction of building .
So if Contractor issues a bill( i.e one bill) for his service in which he bifercates his expences of material and labour seperately . On which amount T.D.S will be deducted
a) On Rs. 16,000 (i.e total value of bill)
b) On Rs 6,000 ( only labour)
Thx
Shweta
02 September 2008
Section refers to any sum paid and that, therefore, even reimbursement of actual expenses cannot be deducted out of the bill amount for the purpose of deduction of tax at source.
Circular No. 715 dated August 8, 1995, may be refereed to
It may also be noted that the Supreme Court in the context of Section 194C has in Associated Cement Co. Ltd vs CIT (1993 201 ITR 435 SC) held that tax has to be deducted on the gross amount of the bill and not on the value of the bill as reduced by reimbursement of expenses.
Circular No. 715 dated August 8, 1995, may be refereed to
It may also be noted that the Supreme Court in the context of Section 194C has in Associated Cement Co. Ltd vs CIT (1993 201 ITR 435 SC) held that tax has to be deducted on the gross amount of the bill and not on the value of the bill as reduced by reimbursement of expenses.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- Capital gain from sale of house property
- Stamp Paper for partnership firm change new income tax 2025
- TDS on Purchase of Immovable Property by NRI from NRI
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Value of property in capital gain
- Annual return in Gst
- When TDS on GST applied
- Before GSTAT- APL-02 Vs APL-04
- TDS APPLICABILITY......
- Copyright software
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
