Tax Deduction At Source
This query is : Resolved
25 April 2008
What is Logic Behind TDS ?
Why TDS on Service tax And Why not on VAT
What is Logic Behind TDS ?
Why TDS on Service tax And Why not on VAT
Shyam Lal Naik
(Expert)
26 April 2008
VAT is charged on sale of goods. TDS is not attracted to contract for sale.
How ever, there may be certain rare circumstances, like transfer of right to use googs, where TDS has to be deducted on VAT also.
How ever, there may be certain rare circumstances, like transfer of right to use googs, where TDS has to be deducted on VAT also.
Shyam Lal Naik
(Expert)
26 April 2008
The logic behind TDS
A measure of tax collection
Tracking un accounted transaction by providing audit trail.
A measure of tax collection
Tracking un accounted transaction by providing audit trail.
26 April 2008
TDS IS A REVENUE COLLECTION MEASURE OF GOVT. - TAX COLLECTION BEING A MEASURE TO RAISE FIN.RESOURCES TO RUN THE ECONOMY LIKE VAT / SERV.TAX / EXCISE / OCTROI / INCOME TAX / LUXURY TAX ETC...SOME OF THESE BEING DIRECT TAXES AND SOME INDIRECT TAXES.THIS IS A GLOBAL PRACTICE.
ASSUME FOR A MOMENT THAT
NO TDS IS DEDUCTED FROM A SALARY EMPLOYEE,
NO TDS IS DEDUCTED FROM CONTRACTOR/OR PROFESSIONAL /NON RESIDENT/COMMISSION PAYMENT/RENT PAYMENT ETC...
WHO WILL ENSURE TAX COLLECTION THEN?
THEN THERE ARE NO CHECKS AND BALANCES. SOMEBODY GOES SCOTFREE WITHOUT CONTRIBUTING TO EXCHEQUER.
THERE IS THE OTHER CLASS LIKE BUSINESS CLASS WHO ARE FORCED TO COUGH UP TAXES BY WAY ADV. TAX,REGULAR TAX ETC...
TDS IS ON SERVICES WHILE VAT IS ON SALE .
R.V.RAO
ASSUME FOR A MOMENT THAT
NO TDS IS DEDUCTED FROM A SALARY EMPLOYEE,
NO TDS IS DEDUCTED FROM CONTRACTOR/OR PROFESSIONAL /NON RESIDENT/COMMISSION PAYMENT/RENT PAYMENT ETC...
WHO WILL ENSURE TAX COLLECTION THEN?
THEN THERE ARE NO CHECKS AND BALANCES. SOMEBODY GOES SCOTFREE WITHOUT CONTRIBUTING TO EXCHEQUER.
THERE IS THE OTHER CLASS LIKE BUSINESS CLASS WHO ARE FORCED TO COUGH UP TAXES BY WAY ADV. TAX,REGULAR TAX ETC...
TDS IS ON SERVICES WHILE VAT IS ON SALE .
R.V.RAO
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Taxation of crypto futures in India Fy 2026- 2027
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Issuing of delivery challan by seller of goods
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
