TDS on Invoice Value

share more facts

what is nature of materials and what is end use of this for the customer, 

if its not a purchase but maintainance activity for customer then he is right to deduct TDS on whole amount

If the material is only a part of the service then TDS on whole amount should be deducted...

otherwise on service element only...

hi sharma,

Material related to Computer hardware

License to Computer software

Service part related to three years onsite support if case of any issue
 

Baskar Sir,

What about your invoice??? Have you raised the invoice for consolidated amount? or Material separately and Srivice and licence part separately?

again details are missing 

computer hardware ...if complete pc then its fixed asset for buyer, but if parts then its maintanance activity

licence to computer software is also to be capitalized

amc is the service part, 

i feel that the buyer has series of computers in their block of fixed assets, and they replced some old with new without adding quantity to the fixed asset block, so your bills are gone in maintanance section only. 

to save the situation in future, issue seperate invoice for every nature of transaction, so that purchase does not goes to service component.

The Invoive Should be raised separately for materials and Service.

In that case TDS will be deducted on service at 10% U/s 194 J of IT Act.

Did you add service tax 10.30% for providing services for 3 years ?
 

Obuli sir,

single invoice with detailed Bill of Material not consolidated......

we are chargeing service tax only of service
 

If you raise single invoice then TDS would be deducted on the entire value of the invoice and not part of the Invoice. In that case you have to raised separate invoice for material and service part.

Please correct me...........

inputs!!!!!!

u have raised single invoice but as u say u bifurgated the amount of naterial and service , the TDS should be on the service part only.

now is the issue of section , it should be 194J -professional services.

and since TDS has already been deducted, check the TDS certificate when u receive , there the deductor also mention the section under which he is deduction TDS.

Payment against purchases are out of TDS pre-view .

To avoid such a situation you should reaise your Invoice separately for Sale of Material, Software etc whare sales tax has been charged. This transaction will not be liable for TDS deduction at your customer's end. Where as Invoices raised by you for services provided by you including service tax will attract TDS.

If you are showing service charges separately in bill and service tax charged only on service amt then he has to deduct tds on service amount only and not on whole amount.
 

I understand the facts are as hereunder:-

you acted as a 'friend" while helping him identify the hardware suitable for him to use the software provided by you.

But you mean legally you are rendering the service only in providing software service.

As per TDS rules the TDS will be on the final invoice amount i.e which you demand from your customer.

but you may mean inclusion of the hardware amount is only reimbursement of the amount paid on behalf of the customer by you out of your pocket.

This is not being accepted by law as this is giving scope to interprete according to Assessee's  convenience.

In the present case your customer is in deducting TDS on the entire amount.