Query for TDS

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This query is : Resolved

Jitender Garg (Querist)

21 February 2008 Hello EXPERTS,
ABC Pvt Ltd place a order for supply of kitchen equipment. As per payment terms of P.O.
Ex work amt 2987010
Exice duty 149351

sub total 3136361

sale tax 3% on 3136361 94091
Installation charges (Included)

Order Value 3230452

Installation of system will be carried out at cost included in above costso it is composite contract.

Now my query is that wether TDS will be done as it is composite order including installation i.e TDS will be done
OR
TDS will not be done as Sales tax is leived on sub total amount

CA. GOPAL SONIKA

CA. GOPAL SONIKA (Expert)

21 February 2008 Mr Jitendar, the question is debatable. The Income tax dept may question for non deduction of TDS as because the word ".....including installation". Whether sales tax was charged on entire bill or not will not be considered.
The point of argument with I Tax dept. that sales tax was charged on entire bill amount and so no TDS deducted will not be accepted on the grounds that as the bifurcation of the material amount and installation amount was not possible, sales tax was charged on entire bill amount.
As such one should deduct TDS.

CA Hemant T Dewani

CA Hemant T Dewani (Expert)

21 February 2008 as per you calculation instalation charges are not seperatly charged

2987010
excie 149351
---------
3136361
CST 3% 94091
-----------
3230452 total amount
instaltion charges are not seperately shown so tds prvision is not applicble

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