Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram
Discussions Forum
Home Forum Service Tax This
A Public Forum.
Anyone can participate to share knowledge.
We acknowledge the contributions of Experts/ Authors.

Submit new Issue / Query

Calculation of tax, Service Tax

Issue Id: - 758
Dated: 25-4-2008
By:- Sriram Narayanan

Calculation of tax


  • Contents

My Comapny is registered under TNVAT Act.We are engaging contractors to do some civil/Electrical works in our Company.They are giving bills charging TNVAT,Service Tax. In some bills material portion, Labour portion is given separately.In some bills there is no separate figures. My issue is whether TNVAT TDS is to be made only on the material portion only.whether we can apply 70/30 formula if material portion is not given separately for calculating the material portion. Presently we calculating TNVAT TDS on material portion(Excluding TNVAT) only.If no separate figure available we apply 70/30 formula for finding material value. Whether this procedure is correct?

Posts / Replies

Showing Replies 1 to 2 of 2 Records

Page: 1


1 Dated: 28-4-2008
By:- V Ramanujam
Works contract is applicable where there is a composite contract involving both supply and labour. As per works contract TDS under TNVAT Act, in respect of payment on works contract, tax should be deducted on the amounts paid. There is no provision to deduct labour portion for the purpose of TDS even if given separately and should be deducted on the entire amount and further the basis of applying 70/30 ratio is also not available.

2 Dated: 28-4-2008
By:- V Ramanujam
Works contract is applicable where there is a composite contract involving both supply and labour. As per works contract TDS under TNVAT Act, in respect of payment on works contract, tax should be deducted on the amounts paid. There is no provision to deduct labour portion for the purpose of TDS even if given separately and should be deducted on the entire amount and further the basis of applying 70/30 ratio is also not available.

Page: 1

Old Query - New Comments are closed.

Quick Updates:Latest Updates