1) Tax to deducted only if total value of supply under the contract exceeds Rs. 2,50,000/-
2) Example 1 –
a. ABC Contractors received the 4-purchase order from Bangalore Municipality.
c. Not applicable
As per the explanation provided, the value of supply shall not include central tax, State tax, Union territory tax, integrated tax and cess indicated in the invoice.
3) Example 2 –
a. ABC Contractors received the a Purchase order for 4.5 lacs; the break upof the supplies are as follows
TDS would not be applicable since taxable goods or services or both(2.25lacs), where the total value of such supply, under a contract(worth 4.5 lacs), does NOT exceeds two lakh and fifty thousand rupees