Is tds apply on vat invoice
SUBHASH
(Querist) 29 August 2013
This query is : Resolved
QUES: SUPPOSE MR X HAS TRANSPORT BUSINESS, AND HE SENT HIS VEHICLES FOR REPAIR TO A VENDOR, VENDER HAS TIN NO ALSO AS HE SALE THE PARTS ALSO,.
NOW MY QUESTION IS WHEN THE BILL RAISED BY VENDOR REGARDING THE PARTS HE REPAIRED AND FITTED AND HE CHARGED VAT ON THE BILLS.
SO CAN WE DEDUCTED TDS U/S 194 C, IF YES THEN ANY NOTIFICATION REGARDING THIS ISSUE.
Anirudh
(Expert) 30 August 2013
Has he given you a separate invoice for the services/labour, apart from the VAT invoice for the goods/replacement done by him?
DILIP KUMAR AAGARWAL
(Expert) 30 August 2013
You have intermingaled the VAT and Income Tax so VAT charged is not allowable u/s 194C. VAT and Income Tax are two different Act.
SUBHASH
(Querist) 30 August 2013
Dilip sir, i knew VAT and Tax are two different taxes, my confusion is regarding the VAT billed. i explain,--
(1) we raise PO(purchase order) to vendors for parts we purchased, vat charges on it, its OK , no TDS question.
(2) Again we raised a outward challan( job/Repair order) that we are sending our vehicles for repair work. normally now days most of the vendors where performing both ( sales & mechanicals repaired) , now after that two types of bill are raised (i) Vat invoice and labour invoice both are separate bills, (TDS apply on Labour BIlls ) am i right sir.
now second type of Bill is same as above but no labour charges only what ever the parts have been fitted has been charged and later on vat has been initiated on this bill . now my confusion is related to this point that when i have raised a job/ repaired order and vendor raised taxable invoice on which VAT has been charged. can i charged TDS or NOt ?.
DILIP KUMAR AAGARWAL
(Expert) 02 September 2013
if there is separate bill for parts and labour then under VAt no TDS deducted and of course for labour you can deduct the TDS as per income tax act.
