Tds applicability

Others 796 views 2 replies

Hi All,

If any one clarify my doubts regarding TDS. 

1.  Whether TDS is applicable for purchase of System Licence (Microsoft) through local vendor and  VAT is charged on the basic amount and Service Tax charged on the basic amount?

For Eg:   

Basic Amount                     1000

Vat @ 5%                             50

Service Tax @ 10.3%          103

                    Total               1153

 

2.  If it is so, Which section of TDS will be applicable (i.e 194J)

Pls clarify asap according to TDS, VAT, Service Tax rules.

P. Jagadeesh Babu

Student & Employee

 

 

 

 

 

Replies (2)

There is no concept deducting TDS on purchases.

If you have any contract with the vendor regarding the maintanence  or AMC then TDS attracts U/s.194C.

Tax deduction at source is not required in case of purchases...
it is applicable only when it comes to contract or annual maintainance contracts with third parties u/s 194c.


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