TDS is Applicable or Not - Urgent!!!!!!!!!

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 May 2010 Dear Experts,

we have made a contract with party for supply of TEA & Coffee material with coffee machine for which we have to pay rental as per term & condition of contract.
party has raised the bill for same and raising only one bill for both (material supplied + Rental of Machine) in bill Party is not claiming service tax on rent of machine or Vat on material supplied on his bills.

is it such kind of billing is deductible tax under contract section 194 C or not liable of tax deduction ?

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
Follow

11 May 2010 If rent charges are shown seprately on bill , then tds on only for rent, otherwise TDS will be deducted on total u/s 194C.

UDAY

UDAY (Expert)
Follow

11 May 2010 if supplier is within the limit of 10 lakhs , then he definately will not charge service tax on invoices. For you it is immaterial , you have to deduct TDS if it is applicable. If u r customer charging rental charges then tds is applicable under 194I not 194C

Querist : Anonymous

Querist : Anonymous (Querist)

11 May 2010 Thank You Sir.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now