TDS on WCT
This query is : Resolved
Hitender Gaur
(Expert)
14 July 2011
TDS will be deduct on Gross Bill Value (Bill Value + VAT)
MJ Krishnamurthy
(Expert)
16 July 2011
Mr. Aman,
Sorry to differ with the above opinion. The TDS has to be made on only the bill value,which is the taxable amount.If TDS is made on the gross value,then you will be paying tax on the tax amount also.This is wrong.
MJK
Sorry to differ with the above opinion. The TDS has to be made on only the bill value,which is the taxable amount.If TDS is made on the gross value,then you will be paying tax on the tax amount also.This is wrong.
MJK
Hitender Gaur
(Expert)
16 July 2011
Dear MJK, Mr. Aman is asking about TDS of WCT (VAT), and you opinion may about TDS u/s. 194C of Income Tax.
MJ Krishnamurthy
(Expert)
16 July 2011
Mr.H Gaur,
I also mean the TDS on WCT(VAT).Suppose,in a bill,a dealer's work bill is for Rs1000/- and the VAT @12.5% is Rs125/-,coming to the gross value of Rs1125/-,then TDS is to be made on Rs1000/- only and not on Rs1125/-.If you make TDS on the latter amount then Rs125/-,which is tax, shall also suffer.This is not correct.In all tax laws,to arrive at the taxable amount,items such as collected tax,freight,interest are to be deducted.
MJK
I also mean the TDS on WCT(VAT).Suppose,in a bill,a dealer's work bill is for Rs1000/- and the VAT @12.5% is Rs125/-,coming to the gross value of Rs1125/-,then TDS is to be made on Rs1000/- only and not on Rs1125/-.If you make TDS on the latter amount then Rs125/-,which is tax, shall also suffer.This is not correct.In all tax laws,to arrive at the taxable amount,items such as collected tax,freight,interest are to be deducted.
MJK
17 July 2011
thanks to all
but as per act
wct on payment made to contractor
as per my opinion
IF bill value+service tax+vat
wct should be on
bill value+service tax
am i right or wrong
pls tell
but as per act
wct on payment made to contractor
as per my opinion
IF bill value+service tax+vat
wct should be on
bill value+service tax
am i right or wrong
pls tell
MJ Krishnamurthy
(Expert)
27 July 2011
Mr Aman,
Again there is a mistake.TDS is to be made on bill value only.Even service tax also should not suffer any tax as I have given an example of VAT in my reply dated 16th july,2011.
MJK
Again there is a mistake.TDS is to be made on bill value only.Even service tax also should not suffer any tax as I have given an example of VAT in my reply dated 16th july,2011.
MJK
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