Tds on Servicing of Cars

Ritesh (CA Final) (326 Points)

19 February 2010  

Hi to all

A company gives it Car for servicing to a party on regular intervals. The Party does servicing along with Service Tax and it also replace parts if requires and charge Vat for that. The Party gives a consolidated Bill for both components(Service Charges and Parts) and both Components can be easily bifurcated in the Invoice.

My query is whether Tds is applicable u/s 194C or not?And if yes, then on what component, whether only on the Servicing Charges or on the consolidated amount?

Thanks in Advance