Income tax on services and material supplied

Do we need to calculate IT incase a bill is raised for materials supplied including service charge for service rendered. For example

Material supplied = 2000

Value Service rendered=1000

Total                                   = 3000

What is the amount of IT to be calculated for this contractor? Is is only on Rs.1000 or Rs.3000????? 

Replies (1)
for tds it should be on the value of service rendered...

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