TDS Matter

TDS 621 views 5 replies

Pankaj

Manager

295 Points Joined November 2009

Hi ............. This is Pankaj

1) Contractor has given contarct bill of Rs 75000/- Breakup as follows :

Labour Contract Rs 55000/-

Material use Rs 14335/-

Service Tax Rs 14335/-

Then , which amount should be considered for tds calculation ?

2) Contractor has given contarct bill of Rs 75000/-, inclusive of material & service tax & other. Means he has not given breakup. He just mentioned " labour charges & material & service tax & other."

then , which amount should be considered for tds calculation ?

please any one explained me

Replies (5)

nilesh dube

Service

74 Points Joined May 2008

Dear Pankaj,

Sec 194C refers to any sum paid. Re-imbursement of expenses can not be deducted out of the bill amount for the purpose of TDS. Please refer Circular No 715 dated August 8, 1995.

It does not make any difference whether expenses are shown separately or not. TDS will be deducted on the Gross amount only.

CA Priya

CS Final

1049 Points Joined September 2009

Hey Pankaj............. As per sec 194 C TDS has to be deducted on the Gross amount.......... So for both the cases TDS has to be deducted at Rs.75000/- only....... Cheeeeeeers................

Rajat Singhal CA,CS,CFA

Senior Manager (F&A)

254 Points Joined November 2009

Helo\lo pankaj....

Priya & Pankaj is right in my co. also we are paying for the civil contracts and TDS is deducted on the gross amount and bifurcation is not relevant for this.....

Y. S. Ghodvaidya

Sr. Accounts Executive

67 Points Joined July 2009

Dear Pankaj Sir,

I Think that You should get the revised bill from your Contractor With Detail Break up to enable you the Correct TDS Calculation

Jayesh

Internal Auditor

214 Points Joined November 2009

Dear Pankaj,

We should ask for the revised bill mentioning catagorically the amount of labour & material. Once such seperate bill is available then TDS will be payable on labour bill and not on material purchased. If somehow we are unable to get the revised bill, then TDS have to be calculated on Gross Amount.

hope your query is solved now.