Rate of tds

This query is : Resolved

CA Varsha Haryan (Querist)
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11 August 2013 XYZ Ltd is providing Copier on rent + charging for Labour work in single bill
for example
Rent for copier Rs.1,000/- + Vat @ 5% = Rs.50/- ---> Total Rs.1,050/-

Labour charges Rs.500/- + Service Tax @ 12.36% = Rs.61/- --> Rs.561/-

total bill amount 1611/-

on what amt TDS is to be levied and at what rate?

whether two separate deduction i.e. On rent 2% and on Contract @ 2%

please clarify

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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11 August 2013 TDS to be deducted u/s 194C on total bill amount.

Section 194I for rent of Plant & Machinery will not be attracted. Only section applicable is 194C.

CA Varsha Haryan

CA Varsha Haryan (Querist)
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11 August 2013 means we need not consider amt of rent when e includes Labour charges?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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11 August 2013 It is a kind of contract for providing service along with photocopier on rent. Here section 194I for rent of Plant & Machinery can not be applied.

Hence TDS to be deducted u/s 194C only.

CA Varsha Haryan

CA Varsha Haryan (Querist)
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11 August 2013 thanks sir

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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11 August 2013 @ CA Varsha ,

TDS on Rent of Plant & Machinery is @ 2% and not 10%.
.

CA Varsha Haryan

CA Varsha Haryan (Querist)
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11 August 2013 sorry sir that was by mistake but my querry is different

CA Varsha Haryan

CA Varsha Haryan (Querist)
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11 August 2013 because when Two elements are in single bill, it affects while considering threshold limits as limits are different for these two different sections

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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12 August 2013 Section 194I not attracted hence limit og Section 194C will apply.

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