Our vendor has submitted bill in the following manner
Form 8C Bill of KVAT Rules (Work Contract Non Compounded Category Dealers)
Work Contract charge – 100
VAT/WCT
100*80%*14.5% - 11.60
(Why 80% - As per Kerala VAT Rules– 20% is considered as labour charge)
Service Tax
100 * 70%(Std deduction scheme of Service tax Valuation rules) * 14.5% * 50%(SP RCM)= 5.075
Total (100+11.60 +5.075) – Rs 116.675
Form 8CA Bill of KVAT Rules (Work Contract Compounded Category Dealers)
Work Contract Charge – 100
Service tax – 100*70%*14.5%*50% = 5.075
Total = 105.075
What is the amount of TDS to be deducted in each case?
CAclubindia
