TDS rate where invoice contains both vat & service Tax

This query is : Resolved 

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 (Expert)

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.

B.Chackrapani Warrier (Expert)
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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