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Tds on work contract

TDS 609 views 1 replies

Bharat Parmar

Accountant

34 Points Joined November 2011

Hello

I issued a work contract to supplier including material. This supplier only issuing Bill showing VAT. No seprate bills for laboure work supplied to me. His explanation is that Rate charges in the material Bill inclusive of laboure rate.

My company is following ESI,P.F.,TDS, Service Tax rules for every laboure work. I wants to release his payment. Kindly suggest me what legal rules I apply before releasing his payment.

Supplier is ready to bare any legal deduction from his bill. Please tell me is there any specific ratio or standard for seprating laboure portion from such bills.

Thanks

Replies (1)

llllVICTORllll

Internal Auditor

511 Points Joined May 2008

I have a similar query,just to add to that.. in my query our company gives order to a contractor to make signboards in name of our company and send it to shops(to be posted as hoardings) that sells our company products, contractor bills us on number of signboards sent. so does the contract attract TDS? no material is supplied from our side, and all the material are from contractor.