Tds deduction
This query is : Open
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 February 2016
Dear Experts,
our company have a xerox machine for rental basis. Every month we are paying the rent and deduct the TDS . Here , i have attached the calculation, whether deduction of TDS is correct or not. pl. clarify.
TAX INVOICE
Printing Charges - 11400
(75% of material consumption on 11400 = 8550)
(70% Labour charges on 11400 = 7980 )
Printing charges = 11400
Vat 5.5 % =470.25
Service Tax14.5 = 1157.10
Total =13027
TDS 2% on (11400+470.25 ) = Rs.238.
Making Payment ( 13027-238 ) Rs.12789.
TDS of Rs.238 , is correct or not ? Pl. help & give a clear clarification
our company have a xerox machine for rental basis. Every month we are paying the rent and deduct the TDS . Here , i have attached the calculation, whether deduction of TDS is correct or not. pl. clarify.
TAX INVOICE
Printing Charges - 11400
(75% of material consumption on 11400 = 8550)
(70% Labour charges on 11400 = 7980 )
Printing charges = 11400
Vat 5.5 % =470.25
Service Tax14.5 = 1157.10
Total =13027
TDS 2% on (11400+470.25 ) = Rs.238.
Making Payment ( 13027-238 ) Rs.12789.
TDS of Rs.238 , is correct or not ? Pl. help & give a clear clarification
19 February 2016
hi
i think your calculation of TDS is correct only under assumption that material consumption details not disclosed separately in invoice.
As per 194C(3), tax shall be deducted at source—
(i) on the invoice value excluding the value of material, if such value is mentioned separately in the invoice; or
(ii) on the whole of the invoice value, if the value of material is not mentioned separately in the invoice.
in the light of above provision,you have to deduct TDS on materials based on the disclosure of material details in invoice as mentioned above.
Regards
Prudhvi Raj
i think your calculation of TDS is correct only under assumption that material consumption details not disclosed separately in invoice.
As per 194C(3), tax shall be deducted at source—
(i) on the invoice value excluding the value of material, if such value is mentioned separately in the invoice; or
(ii) on the whole of the invoice value, if the value of material is not mentioned separately in the invoice.
in the light of above provision,you have to deduct TDS on materials based on the disclosure of material details in invoice as mentioned above.
Regards
Prudhvi Raj
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