Reverse charge under service tax

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This query is : Resolved

Rahul Panwar (Querist)

03 August 2014 if A company/individual enter in a contract for Repairing of chemical Plant which requires technical and professional knowledge and contractor also requires to supply the all material which are to be consumed in repairing of this Chemical Plant. As, in this contract, contractor has to supply both Labours(professional service) and Material so it is works contract thus Reverse charge should be applicable ( 50% paid by the SR and 50% paid by the SP). TDS should be Deducted U/s 194J.
EX
contract amount 200000
70% amount is Service (professional)
30% amount is material
TDS should be calculated as follows

=200000+200000*70%*12.36%*50%
=208652
=208652*10%
=20865

Please reply me as soon as possible thanks in advance

Annu Agarwal

Annu Agarwal (Expert)

03 August 2014 TDS shall be deducted on 2,00,000 and not on amount inclusive of service tax.

Please refer to .CIRCULAR NO. 1/2014 [F.NO.275/59/2012-IT(B)], DATED 13-1-2014

Message likes : 1 times

Rahul Panwar

Rahul Panwar (Querist)

21 September 2014 Dear sir, my questions was not about whether tds is to be deducted inclusive of ST or not. My doubt was about under which section TDS is to deducted (u/s 194J projessional service or 194C Contract Service)

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