Tds on taxes

200 views 3 replies
if tds deducted on sale price +service tax and vat , will the whole amount is considered as income
Replies (3)
No. The whole amount will not be counted as income.

1. GENERALY TDS SHOULD BE DEDUCTE ONLY  ON SALE PRICE . NOT SERVICE TAX AND VAT AMOUNT 

IF ANYONE DEDUCTE TDS FROM WHOLE AMOUNT  , YOU SHOULD ASK TO TDS DEDUCTE ONLY SALE PRICE .

2. SECONDLY YOUR  INOCME ONLY SALE PRICE AMOUNT NOT SERVIE TAX AND VAT AMOUNT ONLU WHEN , BUT CONDITION  IS THAT YOU MUST BE  CHARGE SPERATALLY  S.T. AND VAT IN INVOICE OTHERWISE THE WHOLE AMOUNT IS YOUR INCOME 

 

 

The matter resembles to Works Contract, and so if the invoice generated has clear bifurcation of Material and labour, then no TDS on Material 

But if the invoice is for the complete contract then TDSis to be made on whole of the invoice amount.

If we read the section 194C , it say'' Any sum '' which can implies inclusion of taxes sometimes. while in other cases such as interest, rent, commision, etc there is specific mention as ''Amount as rent, interest, commision''

So Please consider the nature of exp and then decide whether deduction is correct or not.

 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register