tds in case of work contract

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  1. aprajita

    aprajita New Member

    there is a work contract of original work of reverse charge mechanism. Party A (individual)raises bill as
    Rs. 35000 (which include material and labour) but not shown separately

    Now party B make payment to Party A as
    bill amount 35000
    vat 35000*60%*4%=840
    Service tax 35000*40%*(12.36/112.36)*50%= 770
    tds 35000* 1% =350
    Amount paid to party B = 33040

    My question is
    Whether tds is to be calculated on Rs 35000 or Rs 14000(35000*40%)
     
  2. deepak99

    deepak99 New Member

    TDS shall be made on the invoice value excluding the value of material, if
    such value is mentioned separately in the invoice and where value of the material is not mentioned separately in the invoice then TDS shall be made on the whole of invoice value, In your case Invoice value will be 21000 +14000 so TDS should be on 14000/-
     
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