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Service tax and tds on works contract.

1443 views 4 replies

Balendra Parmar

Finance Manager

199 Points Joined February 2010

Dear Sir,

We have problem in booking invoice of works contract. The material Portion is 67 % and service tax portion is 33 % we have confution in applicability of TDS in both portion.We have want to charge TDS on service tax also. This is correct method? also we want to TDS on vat plus material also this is correct?

Regards,

Balendra Parmar.

Replies (4)

Sonam Bidasaria

770 Points Joined July 2008

If VAT is levied on material portion, then TDS should not be dedcuted on the materials.

valji

Accounts manager-MBA

2150 Points Joined July 2008

agree with above

Bhagwat Singh

Finance Executive

21 Points Joined December 2010

Dear Sonam sir if its composit contrat than shall we deduct TDS as well as WCT on bill amount

shreyas

Trainee

230 Points Joined November 2010

Take seperate invoices for material & services & deduct TDS only on service invoice. Otherwise TDS &WCT will be deducted on the entire amount of invoice.