I am working in construction co., I have some confussion in bill payment. We are advance paid Rs.2500000/- to contractor in without TDS deduction. This advance amount we will be deduct 10% in advance amount in every bill payment. And we will be deduct 5% of bill value of retention amount. After the bill value we are paid two part. Now I am getting the contractor bill value Rs.4000000/-. How to I calculate its Service Tax, TDS amount. I am calculate this bill here, plz tell me is it correct or not. Otherwise tell me how to calculate this bill amount.
Bill Value Rs.4000000
Add:Service Tax 4.95% Rs. 198000
Gross Bill Value Rs. 4198000
Less: Adv value 10% Rs. 250000
Bal. Bill Value Rs. 3948000
Less: TDS 2% in Gross bill value Rs. 83960
Bal. Bills Payable Rs. 3864040
Less: 5% Retention in Bal bills Payable Rs. 193202
Net Bills payable Amount Rs.3670838.
Then we will be paid two part amount in bill amount(i.e 1670838 + 2000000). When we are paying this amount, can I deduct any TDS amount?.So plz kindly clarify me about the bill matter, how to calculate and pay the amount.
Bill Value Rs.4000000
Add:Service Tax 4.95% Rs. 198000
Gross Bill Value Rs. 4198000
Less: Adv value 10% Rs. 250000
Bal. Bill Value Rs. 3948000
Less: TDS 2% in Gross bill value Rs. 83960
Bal. Bills Payable Rs. 3864040
Less: 5% Retention in Bal bills Payable Rs. 193202
Net Bills payable Amount Rs.3670838.
Then we will be paid two part amount in bill amount(i.e 1670838 + 2000000). When we are paying this amount, can I deduct any TDS amount?.So plz kindly clarify me about the bill matter, how to calculate and pay the amount.