Vijay Goyal (Tax Consultant) 16 May 2011
Dear Sir please help me.
what will be the Taxable amount on which IT TDS will be deduct.
example. Value of labour charges 210000 (a)
Add: service tax 10.3% 21630
Total Invoice Value. 231630 (b)
On which fiqure TDS will be deducted under IT Act.
Thanks.
A V Vishal (Advocate) 16 May 2011
TDS will be deducted on B
CA soniya (professional) 18 May 2011
Tax will be deducted on the entire consideration inclusive of service tax u/s 194C of the act.
Sukanta Sinha (MANAGER) 19 May 2011
Why it will be on B?
CA soniya (professional) 19 May 2011
Section 194C(1) clearly provides that the requisite deduction of tax has to be made not on the income of the contractor but on the sum paid for carrying out the labour work. So, deduction to be made on the entire invoice value.
Hence B.
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