Tds to be deducted on vat

Yes... You should have to deduct 2 % TDS (Company/ firm/Coop Soc/Local Authority) or 1%( individual HUF) on Total Billed Amount i.e.117.36 Under Section 194C.

Thanx Hemanth but this transaction comes under right to use goods, so do we need to deduct TDS ?

and doesnt it comes under providing professional services as they are proving implementation and maintenance services...

yes, as per my opnion ,

you required to deduct tds as Hemant said, even its right to use goods .

because in right to use goods , the basic thing is you get 1year/more years contract to use the software rights, and required to deduct TDS subject to 94C.

The thing is varalakshmi, if the bill seperately mentions the taxable service component then you may deduct TDS only on work conducted, if its not mentioned then on whole bill amount,... i mean to say there should be clear bifurcation between service component and material component. and being computer software, i am not sure if VAT is applied only of CD its being written on, or anything else.. VAT on computer software still puzzzles me

@ Bhavik

ok suppose we have another client ,we are providing only implementation and maintenance services to that particular client.

Do we need to deduct TDS under 194C or J?

M.Varlakshmi..... Implementation and maintenance services is a Jobwork.... not professional service.... like Consultancy..

Hence, Implementation and Maintenance services is going to be under Sec. 194 C.

Oh thank you Hemanth,

Can you please guide me what type of services comes under Professional and Technical services?

For More clarification of Section 194J please go through following link. and correct me if i am wrong.

/articles/an-overview-of-section-194-j-of-income-tax-3926.asp

Originally posted by : Hemant Kumar
	Yes... You should have to deduct 2 % TDS (Company/ firm/Coop Soc/Local Authority) or 1%( individual HUF) on Total Billed Amount i.e.117.36 Under Section 194C.

YES AGREE......