Tds deduction amount

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Dear Friends,

I  have received  Invoice to party for repair & maintenance of Transformer where Party Use some Material & Provide some Services.

For Exemple

 Items descripttion                                                 Amount (RS.)

Material Used                                                           100/-

ADD. Vat @ 14%                                                        14/-

                                      Total (A)                             114/-

Service Charges                                                   40/-

ADD. Service Tax @ 12.36%                                4.94

                                     Total (B)                             44.94

                                  Total (A+B)                         158.94

Pls. Advise me.

1. Which Amount TDS  should be deducted Only Service Charges or total Amount of Invoice. ?

2. Its belongs to WCT  YES or No.  if yes what should be do. ?

3. Pls. Clear the concept with reason ?

 

With Regards

Amit

 

         

 

               

 

 

Replies (1)

The TDS should be deducted on Rs. 158.94, Because the total amount is the Income of the Another Party. And if you want to Claim it as the Expense in your books of accounts, it is mendatory to deduct TDS on whole amount what you paid to Party. and the rate will be as per category of Deductee.( 2% or 1%)

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