Tds maintainance contract charges with parts and concumable

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 June 2012 OUR CLIENT HAVE MADE A CONTRACT WITH ABC LTD MAINTAINANCE OF PLANT. THE CONTRACT INCLUDES CONSUMABLE PARTS ALSO. ABC LTD GIVES THE BILL IN FOLLOWING FORMAT.

CONTRACT CHARGES------------------362653
SERVIVE TAX@12.36% ---------------44825
VAT @5% ON 80% ON TOTAL CHARGES---14506
TOTAL BILL AMT--------------------421983

WHETHER TDS WILL BE DECUCTED ON THIS BILL OR NOT ? IF YES THEN ON WHICH AMOUNT.

PLEASE QUOTE RELEVANT PROVISION, CIRCULARS WITH YOUE ANS.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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29 June 2012 Yes. TDS need to deduct on total amount Rs.421983/-

TDS rate is 2%, since they raised single bills for both material & service TDS attract total bill value u/s.194C