Service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 March 2015 Dear all
one of my client is (contractee) partner ship firm. who has taken contact from one of pvt. ltd. company for repair electrical goods. and materials was provided by contractor but he has issued the tax invoice in the name of my client.

my client (contractee) has issued the two separate bill one for sale portion and the secound bill for service charges on 50% under
reverse charges 12.36% but that contractor has deducted 2% TDs on service portion. i think. he is not liable to deduct Tds. because he has issued the tax invoice for it's materials,
plz. guide me. will it cover contract for sale or work contract.. and tds will be applicable or not.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 March 2015 TDS of 2% on service portion is right. TDS applicable on works contract and not applicable on contract for sale.

Querist : Anonymous

Querist : Anonymous (Querist)

08 March 2015 Dear Seetharaman sir
first of all thanks for your reply...

but my Query is that. as i have already mentioned for supplying the materials the contractor the issued the tax invoice, which is sale for contractor and purchase for me.

and also the fact that this purchase bill amount will be deduct from my service charges.

i request to you is plz. guide me as per my above Query whether it cover work contract or contract for sale

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 March 2015 It is a works contract TDS has to be made on total contract value.

Querist : Anonymous

Querist : Anonymous (Querist)

08 March 2015 Dear sir,
in your secound reply you have said TDS has to be made on total contact value.

but suppose. total contract value is 100000
and two invoice was issued one 60% portion with 5% vat and secound 40% service portion with 12.36%, if it is work contract, TDs to be made on 40000 or 60000.

thnk in advance....

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 March 2015 If separate invoices are issued you can deduct TDS on service portion.

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