Tds on works contract

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Manjinder Singh (Querist)
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24 July 2013 Sir we did works contract for our hotel project

We had given an advance of Rs. 1450000 to contractor. Now he has given bill in which pure labour amount is Rs. 400000 and material+labour amount is Rs. 300000. on 400000 they have charged 12.36% svc. Tax. On 300000 they have charged 4% VAT and on that amount they have charged 4.944 svc Tax again. on total amount they have charged labour cess of 1%.
Kindly advise me the TDS % and on which amounts it should be deducted.

Sincerely
Manjinder Singh
9888561834

Ganeshbabu K

Ganeshbabu K (Expert)
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24 July 2013 As per Section 194C Subsection 3

TDS IS DEDUCTABLE,

(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.

Thanks & regards
Ganesh babu k

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