Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 November 2014 Whether TDS is deductible on Service Tax or not
viz
Service Bill for Rs100 + SerTax 10 =110
on which amount TDS is deductibe 100 or 110

Regards
KVC Shekhar
8236829884

CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)
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24 November 2014 No, TDS is not to be deducted on service tax.
As per circular no. 1/ 2014.

In instant case it will be deducted on Rs.100 only.

Thanks.

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Amol S Joglekar

Amol S Joglekar (Expert)
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24 November 2014 A subtle difference in the WORDINGs of the TDS sections make the life of deductor simple.194G, 194H, 194I, 194J.....use the word "income" and NOT "payment"
So? whenever in the section the word "income" is used...deduct TDS on 100 in your above cited example.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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24 November 2014 TDS to be deducted on amount excluding service tax for all sections. The CBDT has issued Circular No. 1/2014 dated 13.01.2014 pointing out that the Rajasthan High Court has taken the view in CIT(TDS) vs. Rajashthan Urban Infrastructure that if as per the terms of the agreement between the payer and the payee, the amount of service-tax is to be paid separately and was not included in the fees for professional services or technical services, no TDS is required to be made on the service-tax component u/s 194J of the Act. Pursuant thereto, the CBDT has decided in exercise of powers u/s 119 that wherever the terms of the agreement/ contract between the payer and the payee, the service tax component comprised in the amount is indicated separately, tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without including such service tax component. Complete notification may be seen from below link--
http://law.incometaxindia.gov.in/DIT/Circulars.aspx

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Querist : Anonymous

Querist : Anonymous (Querist)

25 November 2014 Sir,
Pl confirm from which date TDS is not being deducted on Service Tax.

Regards
KVC Shekhar

Amol S Joglekar

Amol S Joglekar (Expert)
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25 November 2014 It is a time old provision. What is the date of your transaction?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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25 November 2014 The above mentioned notification is applicable from 13.01.2014. Prior to this TDS was not required to be deducted on service tax only for Section 194I.

Querist : Anonymous

Querist : Anonymous (Querist)

25 November 2014 Sir
Asking for Section 194C and 194I.
fy 13-14.
Regards