Tds on vat component

Save Share

This query is : Resolved

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....
plzz rply

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

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.

Message likes : 1 times

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)
Follow

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

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