Tds on labour contractors 194c

Tds is deducted on service part only. and tds not deducted on service tax
 

thank you sir

Tds should be dedcted on whole value of invoice. Tds is not limited to the amount you consider for service tax.

I think Mr.Vishnu is right as total value of materials used is mentioned in the invoice. So TDS should be deducted on service portion only.

TDS will be deducted on material portion.If there is bifuracation of Material and service in invoice than TDS should be deducted on Service amount. TDS to be charge excluding service tax.

As per case of Rajasthan urban development limited TDS deduction Excluding of service tax whole of amount with material

As per case of Rajasthan urban development limited TDS deduction Excluding of service tax whole of amount with material

By excluding service part..

I would like reiterate the fact that there is no exclusion of materials involved, except only in case of manuf or supply of product using the materials of the payer as per the specification of payer if shown seperately in invoice. I would have to differ with my esteemed collegues who have advised otherwise.

@ Mr. Karthik ~ you mean TDS to be deducted on Basic + VAT i.e. on Rs.3,24,009/- in this case?

If terms of contract provide for seperate payment of service tax the same is to be excluded as per not no 1/2014 and as per high court decision on rajisthan urban development case law. It would be equally appicable where the person is acting as just a collecting agency on behalf of govt. Though i believe the said judgement can be equally appilcable in case of vat or any indirect taxes since there are no specfic notifications in this regards and to avoid harrassment by tax department i would suggest you go ahead with tds on vat portion as well.

If terms of contract provide for seperate payment of service tax the same is to be excluded as per not no 1/2014 and as per high court decision on rajisthan urban development case law. It would be equally appicable where the person is acting as just a collecting agency on behalf of govt. Though i believe the said judgement can be equally appilcable in case of vat or any indirect taxes since there are no specfic notifications in this regards and to avoid harrassment by tax department i would suggest you go ahead with tds on vat portion as well.

Tds deduction only invoce value ex. Vat

Tds deduction only invoce value ex. Vat