Tds on professional services

Hi, I have recently started a business.

 

I bought some goods for Rs.7 lakhs and am trying to sell them off for Rs.10 lakhs. So, my profit would be 3 lakhs.

 

I understand that the buyer has to deduct 10% TDS from the above amount. He says that he will deduct 10% on whole invoice amount of Rs.10 lakhs. 

 

Is he right in deducting the TDS on invoice amount or can I request him to do it on a lesser amount (on profit of Rs.3 lakhs).

 

As per Tax laws, should TDS be deducted on Invoice amount or Profit amount.

 

 

Replies (10)

1. This is not a professional work

2. This is purely Trading

3. No TDS for Trading Activity

Originally posted by : ShivaShankar M.R.

1. This is not a professional work

2. This is purely Trading

3. No TDS for Trading Activity

 

 

Agree with  Mr.ShivaShankar

Being the Nature of the transaction purely trading no need to deduct Tds.

 

Selling of goods is not a professional work but trading and hence TDS need not be deducted.

I think vivek is asking for TCS. What kind of goods are u selling and who is your client?

sCRAP SALE ATTRACT A TCS OF 1%.....

Please let us know whether you are selling goods or services.If you are selling goods then TDS rules will not applicable.If it comes in the ambit of TCS then its your liability to collect TDS on sales.In case you are selling services means if you are providing services then TDS Rules are there.

Waiting for more informaion from your side.

S.R.Associates

9685595760

srassociates0713 @ gmail.com

https://www.facebook.com/pages/SRAssociates/600829063295496

 

Tds is not applicablein your case.

Mr Vivek

first of all, explained the name of commidity in which you start the bussiness. There is on TDS on trading but TCS is applicale on some goods trading, To see the Rate of TCS applicable visit as under lik:-

  • www.simpletaxindia.net/2013/03/tds-rate-chart-fy-2013-14-tcs-rate.html

 

Originally posted by : satish kumar

Mr Vivek

first of all, explained the name of commidity in which you start the bussiness. There is on TDS on trading but TCS is applicale on some goods trading, To see the Rate of TCS applicable visit as under lik:-


I am into re-selling of Cable Ties and other wire/cable products.


www.simpletaxindia.net/2013/03/tds-rate-chart-fy-2013-14-tcs-rate.html





 

Mr. Vivek

There is no TCS or TDS applicale in your trade .

Thanks

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