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Tds on wood work / glass work in office

Sunil Rana (AM - Accounts) (28 Points)

22 February 2016

we are paying a contractor Rs. 90000/- for wood work & glass work fitting in office. he is not charging service tax and just given a invoice on his letter head showing 90000/- for work. will he liable to deduct the TDS . if yes then what %

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5 Replies

Raghavendra (Accountant) (53 Points)
Replied 22 February 2016

If the bill was bifercated in labaour and material than TDS will be deducted on labour charges otherwise

TDS will be deducted on invoice amount. (sec.194C )

1% if the payment is being made to Individual or HUF

2% in all other cases

1 Like

CA MANISH SAXENA (Partner) (561 Points)
Replied 22 February 2016

agree with Mr.Raghavendra!

1 Like

Satyam Keshri (Student CA Final ) (35 Points)
Replied 23 February 2016

This case will be covered in the purview of Works Contract which involves both Material plus labour charges in a bill. And since you are getting a single invoice , service and material provided would be mentioned in the invoice, so in your case, 70% of the total amt. Charged will be liable to service tax @ 14.5% if its a invoice after 15.11.2015 and you will also be liable to TDS on that amount since you don't know the labour portion in the invoice

1 Like

Vivek Rautela (1 Points)
Replied 15 March 2016

Hi All,

I bought a new house in Bangalore and going for the woodwork. When I asked the interior guy for the detailed cost including Vat & Service Tax he said

VAT will be 14.5% on 75% of the total cost and Service Tax will be 14.5% on the 70% of the total cost. So for an eg. if the cost is 100rs

VAT = 14.5% on 75rs = 10.875

Service Tax = 14.5% on 70rs = 10.15

So total Tax is 10.875 + 10.15 = 21.025 which I think is too much.

I asked other people in my society they said for them one interior guy charged

VAT = 14.5% on 75rs = 10.875

Service Tax = 14.5% on 40rs (labour charges) = 5.8

So total Tax is 10.875 + 5.8 = 16.675

however the other interior guy charged 14.5% flat on total cost.

I am confused how they are charging different tax. Could you please help to understand the correct taxation charged in woodwork in Bangalore.

Regards

Vivek

Edward Johnson (Worker) (22 Points)
Replied 21 April 2019

It sounds like interesting job opportunities. I'm currently working in the glass company and we produce glass links here so you are also welcome to be aware of our company. We are looking for reliable people to work for our company.