TDS on VAT

under IT Act 1961, TDS is deducted on gross value of bill. If bill raised is composite in nature i.e both value of services eg labour , technical/professional in nature and also includes value of supply on which VAT is applicable in such situation TDS on gross value is applicable

as Mr. mahanta said the language of the sections 194c & j is very clear that tax has to be deducted at source on the payment that is made to the payee so tds has to be made on the entrire amount that is being paid to the payee it may include service tax element vat element - to my knowledge there is no any specific circular or notification to this effect we interpret from the language of the section

plz let me know about the tds on vat

Whether Excise duty to be included while caculating the the TDS (Under IT)

Leaving the TDS on rent(Section 194I)....under all other sections TDS is deducted on bill amount and if any other tax has been deducted on the bill....then TDS will be deducted including that tax as well.

According to a circular in case of TDS on rent (194I) TDS will be deducted exclusive of service tax

The point to be noted is the contractor is paying Rs.2/- as TDS on the VAT amount of Rs.100/- which is not his income.Though he will get it back as refund but in case of bills of big amount his money will be block for more than a year.

Hello!

Yes, TDS is to be deducted on gross amount inclusive of VAT.

No such circular is available but it can easily be interpreted from the language of the Act.