Applicable amount for tds caliculation

This query is : Open

karteek madhvan (Querist)
Follow

03 April 2013 if Invoice amount includes with service tax, on

Amount - Rs.10,000
S.T - Rs. 1,236
----------
Invoice Amount Rs.12,236
---------

on that if tds is applicable on which amount i have to calculate tax excluding service tax or on total invoice amount. at present we are calculating tds on the base amount( Rs. 10,000).
which is correct and better. please suggest with the support references of IT dept. Service tax dept.,if any.

Deepali

Deepali (Expert)
Follow

03 April 2013 Only on the expense head "Rent", TDS on the Service Tax Amount is not to be deducted. Rest on all the bills, TDS is to be deducted on the amount inclusive of Service Tax.

Message likes : 1 times

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

03 April 2013 In case of 'rent' Deepali's observation is correct as per circular 4/2008 dated 28/04/2008.
But in case of 'commission' TDS as per section 194H applies only for the amount excluding service tax.

Message likes : 1 times

karteek madhvan

karteek madhvan (Querist)
Follow

04 April 2013 Ok thank you, in case of rent TDS to be caliculated excluding Service tax, i want some more clarification regarding these rent or hire charges for immovable or movable Ex:building rent, car or vehicle rent or hire, barges, tugs hire or rent.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now