V. NAVEEN KUMAR SICASA 27 January 2020
>One company entered works contract with another company for construction of solar plant.
>Based on contract, contractor billing the other party for supply of goods and services showing separately in the same invoice.
>Now my doubt is on what value, TDS need to be deducted????
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Kapadia Pravin 27 January 2020
Better if contractor issues seperate invoices - one for materials and another for labour and other services.
if it's identifiable in this way, there may not be TDS on materials payments.
TDS will be at applicable rate on labour and other services bill.
One more caution is to pay by seperate cheques or Online modes seperately for material invoice and Labour other charges invoice.