Tds on combined bill of readymix & suplly service?

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dinesh

PROPRIETOR

25 Points Posted on 17 July 2012

A client of ours in construction activity, procures concrete readymix from two different Companies. both of them also provide supply service and laying and pumping.

1. One company sends a bill for the concrete mix does neither mentions supply service in the bill nor raises a separate invoice, and adds VAT on the total.

2. and the other sends two separate bills, one for the concrete mixture (adding VAT) and the second for laying and pumping service (Adding Service TAx)

in the second case we are deducting TDS only on the service bill, u/s. 194c.

However we are not sure whether to deduct TDS in case 1 on the whole Bill amount or do not deduct TDS at All.

Replies (3)

CA Shrenik Sancheti

also Completed CS

23 Points Posted on 17 July 2012

In first case its the party who is liable for providing appropiate bills i.e mention there in the services provided.

Further when such assesse will be under scrutiny assessment it will create problem for him.

you can ask for proper bills or take an undertaking for him to suffice yourself from the compliance.

Thus you can keep yourself clear from TDS compliances

In second case you are deducting TDS correctly..

Ananthakrishnan TS

Manager - Finance & Accounting

22 Points Posted on 17 March 2015

Hi,

Can you please help me on the clarification. What if the supply of material and laying & pumping services are billed in the same invoice by including VAT for supply of material and service tax for the services rendered. What is the implication of TDS?

Should it be the 2% deducted from the invoice value or how it should be done?

Thanks in advance!