We purchase software license from X Ltd. Details of the same -
Base Price = Rs.1000 Service Tax on above = Rs.103 VAT (on BP + ST) = Rs.44 Total (invoice value) = Rs.1147
TDS [(1147-44)*10%]= 110
Whether the above procedure followed by client in right?
Why in computing VAT ST included? Why in computing TDS VAT portion alone eliminated? Whether those are requirement of act? If so, help me out in knowing the same.
18 May 2011
If this is a repair & maintenance, then it is a type of contract. so, TDS will charged u/s 194C. then TDS will be charges on total amount inclusive of everything.
but if this treated as rent u/s 194I, thern TDS will only be charge on rental amount.
CAclubindia
