loophole of TDS law (Hi Experts need your opinion)
This query is : Resolved
24 March 2008
Whether tax to be deducted in case of supply of food/tea by a hotel at office premise. assuming payment crossing the limit.
It is not a catering type of arrangement
No doubt serving food at restaurant is not covered U/s-194C.
Just because person (Labour/waiter) coming and providing the facility. is it necessary to deduct tax ?
It is not a catering type of arrangement
No doubt serving food at restaurant is not covered U/s-194C.
Just because person (Labour/waiter) coming and providing the facility. is it necessary to deduct tax ?
pushpendra
(Expert)
24 March 2008
It is always better to deduct tax if the limit cross.
25 March 2008
please do not conclude the law in one sentence. Explain why to deduct and why not to deduct
CA. Kirti S. Ganatra
(Expert)
25 March 2008
They are providing service so on services where Service Tax apply you should deduct TDS. But if any VAT is taxed Deduct TDS after VAT items
25 March 2008
UNDER SEC 194 C IF A SINGLE PAYMENT EXCEEDS RS 20000/- OR EXCEEDS RS. 50000/-OF AGGREGATE PAYMENT IN A FIN. YEAR,TDS IS DEDUCTIBLE ONLY IF SUCH A PAYMENT IS MADE IN PURSUANCE OF A CONTRACT BETWEEN A SPECIFIED PERSON AND A RESIDENT CONTRACTOR .
SPECIFIED PERSON INCLUDES FIRM, COMPANY ,COOP. SOCIETY,LOCAL AUTHORITY,CENTRAL OR STATE GOVT.SOCIETY, TRUST,UNIVERSITY ETC...
TDS IS DEDUCTIBLE FOR CARRYING OUT ANY WORK BY A CONTRACTOR INCLUDING SUPPLY OF LABOR FOR CARRYING OUT ANY WORK .
WORK INCLUDES CATERING TYPES OF JOBS ALSO.
IF VAT IS CHARGED BY CONTRACTOR ,TDS IS DEDUCTIBLE AFTER ADDING VAT TO THE CONTRACTOR BILL.
IF SERVICE TAX IS CHARGED ADD SEVICE TAX TO CONTRACTOR BILL AND THEN DEDUCT TDS.
IF VAT OR SERV. TAX BOTH ARE NOT CHARGED BY CONTRACTOR ,THEN TDS IS APPLICABLE ONLY ON LABOR CHARGES CHARGED BY CONTRACOR.
IF CONTRACTOR ADDS MATERIAL AND LABOR IN HIS BILL, WE NEED TO DEDUCT TDS ON TOTAL OF BOTH.
R.V.RAO
SPECIFIED PERSON INCLUDES FIRM, COMPANY ,COOP. SOCIETY,LOCAL AUTHORITY,CENTRAL OR STATE GOVT.SOCIETY, TRUST,UNIVERSITY ETC...
TDS IS DEDUCTIBLE FOR CARRYING OUT ANY WORK BY A CONTRACTOR INCLUDING SUPPLY OF LABOR FOR CARRYING OUT ANY WORK .
WORK INCLUDES CATERING TYPES OF JOBS ALSO.
IF VAT IS CHARGED BY CONTRACTOR ,TDS IS DEDUCTIBLE AFTER ADDING VAT TO THE CONTRACTOR BILL.
IF SERVICE TAX IS CHARGED ADD SEVICE TAX TO CONTRACTOR BILL AND THEN DEDUCT TDS.
IF VAT OR SERV. TAX BOTH ARE NOT CHARGED BY CONTRACTOR ,THEN TDS IS APPLICABLE ONLY ON LABOR CHARGES CHARGED BY CONTRACOR.
IF CONTRACTOR ADDS MATERIAL AND LABOR IN HIS BILL, WE NEED TO DEDUCT TDS ON TOTAL OF BOTH.
R.V.RAO
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