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Tds on vat component

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Querist : Anonymous

Querist : Anonymous (Querist)

02 February 2017 Hello Experts,
In audit of an educational institute, i found invoices of Xerox & printing.Vendor has charged vat on the invoice.But my client has considered it to be works contract & deducted tds u/s 194 C.Is this treatment right.& TDS , If to be deducted on what amount? Amount inclusive or exclusive of VAT?

Pllzzzz mention circular no. or section....
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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

02 February 2017 Yes the treatment is right. VAT and TDS applicable on works contract. TDS has to be deducted including VAT but exclusive of service tax.

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Querist : Anonymous

Querist : Anonymous (Querist)

02 February 2017 But i wanted to ask whether Photocopy & Printing is considered as works contract?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

02 February 2017 As material and service is involved it will fall under works contract both for VAT and income tax.

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