Dear All,
While performing an audit came across bills for preparation of sign boards and flex printing. Pl. let me know whether TDS to be deducted on such bill. The bill value is arrived as below:
Sign boards 50 Qty 1250 Rs. 62500.00
VAT @ 12.5% 7812.50
Total 70312.50
TDS 194C... applicable......Amount of VAT is Part of Bill.( Exp. ) .. we can not take separate this..
No Tds Shall be deducted because it is the contract of sell.such contract is beyond the scope of definition of Works contract.
Since VAT is charged, it looks like purchase. It does not required to deduct Tax (u/s 194C)
If the invoice contains any charges towards Labour work. Tax should be deducted on that portion only (u/s 194C)
TDS SHALL BE DEDUCTIBLE IF INVOICE IS OF JOB BILL
| Originally posted by : Vikky Vasvani | ||
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TDS 194C... applicable......Amount of VAT is Part of Bill.( Exp. ) .. we can not take separate this.. |
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AGREE WITH ABOVE...
TDs shall be deducted under section 194 c on amount of 70312..
According to me when VAT is charged on full amount then TDS should not to be deduct.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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CAclubindia
