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TDS rate where invoice contains both vat & service Tax

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This query is : Resolved

pratik kothari (Querist)
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20 November 2010 hello everyone,

company has received follwoing invoice from its contractor

material 1000
vat@5% 50
labour charge 1000
service tax@10.3 103

Total 2153

how tax should be deducted assuming that single as well as annual limits is satisfied.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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20 November 2010 Deduct TDS u/s 194C on total Bill amount. Since separate bill for material is not given.
TDS Rate...
Individual/HUF @ 1%
Others 2%

But it is better if the contractor provides separate bill for material and and service.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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20 November 2010 If the material is not purchased from the awarder,TDS provisions will not attract for the said transaction by virtue of the substituted section 194C w.e.f 1/10/2009.

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