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Tds deduction

TDS 634 views 2 replies

If party charge Service tax (4.13%) on part bill amount & Charge 5% VAT on 100% bill amount. is it relevant.? if yes, then TDS   should be deduct on on what amt.?

see example of invoice below.

Bill amt.                                1000

Add: Service tax (4.13%)       17 (40% of bill amt)

add: vat 5%                            50 (100% of bill amt)

                                            -----------

grand total                          1067

                                           ========

Is it relevant? tds should deduct on what amt?

Kindly Suggest.

 

 

Replies (2)

Tax has to be deducted on gross amount in your case i.e. on Rs. 1,067/-

Yes, agree with Kumar sir............TDS is always deducted on the gross amount payable.smiley


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