Should I deduct tds on the charges paid towards "Interior decoration" where party made bill inclusive of material and labour both and charged vat on material portion.
03 November 2009
Income tax has to be deducted under section 194C on the invoice value excluding the value of material if such value is mentioned separately in the invoice, or on the whole of the invoice value if the value of material is not mentioned separately in the invoice. This is the position if material is supplied by the customer. However, if the work is done using material purchased from a person other than the customer no tax deduction is required. The above provision is w.e.f 01/10/2009.