Tds on wood work / glass work in office

If the bill was bifercated in labaour and material than TDS will be deducted on labour charges otherwise

TDS will be deducted on invoice amount. (sec.194C )

1% if the payment is being made to Individual or HUF

2% in all other cases

 

 

agree with Mr.Raghavendra!

This case will be covered in the purview of Works Contract which involves both Material plus labour charges in a bill. And since you are getting a single invoice , service and material provided would be mentioned in the invoice, so in your case, 70% of the total amt. Charged will be liable to service tax @ 14.5% if its a invoice after 15.11.2015 and you will also be liable to TDS on that amount since you don't know the labour portion in the invoice

Hi All,

I bought a new house in Bangalore and going for the woodwork. When I asked the interior guy for the detailed cost including Vat & Service Tax he said

VAT will be 14.5% on 75% of the total cost and Service Tax will be 14.5% on the 70% of the total cost. So for an eg. if the cost is 100rs

VAT = 14.5% on 75rs =   10.875

Service Tax = 14.5% on 70rs = 10.15

So total Tax is 10.875 + 10.15 = 21.025  which I think is too much. 

 

I asked other people in my society they said for them one interior guy charged 

VAT = 14.5% on 75rs =   10.875

Service Tax = 14.5% on 40rs (labour charges) = 5.8

So total Tax is 10.875 + 5.8 = 16.675

however the other interior guy charged 14.5% flat on total cost.

 

I am confused how they are charging different tax. Could you please help to understand the correct taxation charged in woodwork in Bangalore.

Regards

Vivek

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