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Vijay Goyal (Tax Consultant)     16 May 2011

Taxable Value for IT TDS

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.



 4 Replies

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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