Service tax and tds

This query is : Resolved 
 

(Querist)
20 March 2017

If any proprietor is providing service to any Pvt Ltd Company first time. He raised an invoice of 75000. Is any TDS is deducted from his invoice? And liability of service tax will start after crossing 10,00,000 ;or service tax liability will start from from next year(From April) after completion of financial year?

When proprietor will become liable to pay Service Tax?


CA Shubhanshu Jain (Expert)
20 March 2017

Yes, TDS is applicable @2%

A person is required to pay service tax only when his services in previous year exceeds Rs. 10 Lakhs but registration is required when service are provided for more than Rs. 9 lakhs.

In your case service tax is not applicable because as you have mentioned that this is your first invoice

CA Manali Maniar (Querist)
20 March 2017

Should I Liable to pay Service Tax from next year as 10lakh limit is only for 1 year?
and TDS should be deducted u/s 194J @10% or u/s 194c @ 1%?

CA Shubhanshu Jain (Expert)
20 March 2017

What is nature of service and what is amount of service bills raised in current year

CA Manali Maniar (Querist)
20 March 2017

System Software Testing
approx 215000 till now

CA Shubhanshu Jain (Expert)
20 March 2017

TDS is applicable under 194J (Since Software testing is a professional service)

since your services are for less than Rs. 10 Lakhs, so there is no service tax liability in this case.

CA Manali Maniar (Querist)
21 March 2017

alright
got it
thank you



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