Nirav Pankaj Shah (Indirect Taxation Practitioner) (40 Points)
17 November 2011Please advise if we don’t get instruction from contractor, at what rate should we deduct taxes? It’s a civil works contract. And labour and material not shown separately. On what amount deduction shall be made? Bill amount is 195000/-
ashish gupta
( student)
(1922 Points)
Replied 17 November 2011
If labour and material charges are not shown separately then deduct TDS on full invoice amount
Nirav Pankaj Shah
(Indirect Taxation Practitioner)
(40 Points)
Replied 17 November 2011
| Originally posted by : ashish gupta | ||
 |
If labour and material charges are not shown separately then deduct TDS on full invoice amount |
 |
at what rate? is there no standard deduction for labour portion ?
ashish gupta
( student)
(1922 Points)
Replied 17 November 2011
There is no Standard Deduction for material or labour portion. Deduct tds at full rate at full invoice amount. text from the section 194 C is reproduced below.
3) Where any sum is paid or credited for carrying out any work mentioned in sub-clause (e) of clause (iv) of the Explanation, tax shall be deducted at source—
(i) on the invoice value excluding the value of material, if such value is mentioned separately in the invoice; or
(ii) on the whole of the invoice value, if the value of material is not mentioned separately in the invoice.
Nirav Pankaj Shah
(Indirect Taxation Practitioner)
(40 Points)
Replied 17 November 2011
Boss, i m asking for TDS under Karnataka VAT Act. not under IT Act.
ashish gupta
( student)
(1922 Points)
Replied 17 November 2011
Sorry I did not realise that. No idea about karnatka VAT. M sorry again
Nirav Pankaj Shah
(Indirect Taxation Practitioner)
(40 Points)
Replied 17 November 2011
Not an issue. Tq.
Mahavir
(Student)
(161 Points)
Replied 17 November 2011
Nirav Pankaj Shah
(Indirect Taxation Practitioner)
(40 Points)
Replied 17 November 2011
nope. VAT act also provides provisions for TDS ....
Yogesh Kumar Gupta
(Manager Accounts)
(21 Points)
Replied 12 March 2012
Vat tds is also described by the state vat . so the rate of vat tds is different from the TDS in Income Tax.
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