TDS on invoice Value
This query is : Resolved
12 July 2011
hi,
We are sales orgainsation and we have received payment from customer after deducting TDS on total purchase order value.
Purchase order details:
Material : 200000
License : 100000
service : 50000
Total Value : 350000/-
Customer deducted TDS @ 10% : 35000/-
My concern is customer suppose to deduct TDS only on service value component instead of whole Purchase order value.
If i am correct, please provide under which section TDS has to deduct.
We are sales orgainsation and we have received payment from customer after deducting TDS on total purchase order value.
Purchase order details:
Material : 200000
License : 100000
service : 50000
Total Value : 350000/-
Customer deducted TDS @ 10% : 35000/-
My concern is customer suppose to deduct TDS only on service value component instead of whole Purchase order value.
If i am correct, please provide under which section TDS has to deduct.
12 July 2011
Q1 : What kind of license is this ?
Q2 : How the billing being done ? (separate or combined for all the above) ?
Just reply to above questions...Then an appropriate reply can be given.
Q2 : How the billing being done ? (separate or combined for all the above) ?
Just reply to above questions...Then an appropriate reply can be given.
05 August 2011
According to section 194C subsection 3 provides the following
(3) Where any sum is paid or credited for carrying out any work mentioned in sub-clause (e) of clause (iv) of the Explanation, 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.
But as per said case the TDS made as per sec.194J i guess. the section 194J not told any separate clarification like this, but the other TDS section 194C giving this clarification the same can be interpreted here also
According to section 194C subsection 3 provides the following
(3) Where any sum is paid or credited for carrying out any work mentioned in sub-clause (e) of clause (iv) of the Explanation, 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.
But as per said case the TDS made as per sec.194J i guess. the section 194J not told any separate clarification like this, but the other TDS section 194C giving this clarification the same can be interpreted here also
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