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Works contract -tds

TDS / TCS 676 views 5 replies

Hello All,

Catering service includes both goods part and service part.

If seperate bill is available for goods and service part ,we deduct TDS only on service portion only.

What if seperate bill is not available? do we deduct TDS on total bill or 40% of amnt ?

please clarify.

Thanks u all.

Replies (5)

AS PER T.D.S U/S 194C,SHALL BE DEDUCT ONLY TO THE EXTENT OF THE AMOUNT OF JOB WORK DISCLOSED IN THE INVOICE.ON THE OTHER HAND,IF THE VALUE OF THE MATERIAL IS NOT MENTIONED SEPERATELY IN THE INVOICE,THEN TAX SHALL BE DEDUCTED AT SOURCE ON THE WHOLE INVOICE VALUE.

But if it comes under works contract ,dont we require to follow compisite scheme under works contract ,there by dividing bill amnt to 60% and 40%

I think U are quite confused(ing) .....the difference between VAT and Income Tax. The ? of bifurcating material part service part arises under VAT Act(s)/Service Tax Act ONLY.  Whereas in the case of TDS ,

So far I did not come across such bifurcation and deduct only on Material /Service part. (If it is mere reimbursement......o.k.    otherwise...there is no possiblity of such thught)

@ Rambabu ,I didn't get u

dear Rambabu

me too.


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