TDS APPLICABLE OR NOT?

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This query is : Resolved

Gaurav Garg (Querist)

03 April 2009 Some Samples of Invoices are given below. I wish to know whether TDS is applicable in each case or not.
If yes on which amount and at what rate?

Please answer with reason

A) Vendor ABC Ltd. Okhla Delhi
AC Installation Bill :
Particulars: Amount (Rs.)
Refrierant Piping 1,27,500
Stablizer for Cassette 67,500
PVC Drain Pipe 19,950
Angle Iron Stand 31,500
Standard Installation 31,500

Total 2,77,950
Add 12.5% VAT on 70% 24,321
Add Service Tax 12.36%
on 30% 10,307

Grand Total 3,12,578

Whether TDS is applicable on 30% amount
including service tax or on full amount
or not applicable at all.If applicable
then under which section.

B) Vendor XYZ Ltd. Karol Bagh Delhi
Glow Sign Board Installation Bill:
Particulars: Amount (Rs.)
Size 17'x3' (51 SQ Ft) 10,965
Iron Angle Charges 900
Cartage & Octroi
(excluding Vat) 7,500
Night Charges (4 Persons) 1,600
Food & Bus Ticket 2,200

Total 23,165
Add: Vat @ 12.5% on 11,865 1,483

Total Sales Price with Vat 24,648

Whether TDS chargeable on Cartage
amount or on Cartage + Night Charges
+ Food or not applicable at all. If
applicable then under which section.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)

03 April 2009 TDS has to be deducted including the service tax. Section 194 C will be attracted. Since the value is less than 20000 tds provision will not be attracted in case a.

Case B.
TDS is chargeable on all the expenses incurred by the venodor and not on the amounts spent under sales category where 12.5% is charged. Section 194C is attracted here. Since the value is less than 20000 tds provisions will not be attracted.

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