Tds with service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 September 2014 My Client Paid Consultancy fee RS 33708 including Service TAx Now I Want To Deduct TDS But Excluding Service Amount is Rs 30000 so Should i deduct TDS O NO?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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16 September 2014 ideally if this is the only payment to be made, no TDS should be deducted as the amount paid doesn't exceed Rs 30000.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 September 2014 The payment is in excess of Rs 30000 so deduct TDS only on Rs 30000 excluding service tax.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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16 September 2014 Agree with view of Nikhil Ji. TDS applicable on amount excluding service tax. Since the Fees is Rs 30000 which is within the threshold limit, TDS not required to be deducted provide this is the only payment during the FY.

srinivasan

srinivasan (Expert)
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17 September 2014 For excluding service tax amount from TDS two conditions should be satisfied.

1. It should be agreed to pay the service tax Separately ie in addition to the consideration for the services
2. In the invoice the service provider should have charged the service tax separately
Only if both the conditions are meet the service tax portion can be excluded from TDS

In short if the price agreed is all invlusive of taxes then the TDS has to be effected on the gross value of invoice including the servicetax .

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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17 September 2014 whether sep or in invoice service tax is charged no tds is dedcutible as per notificartion number 1/2014 and u need to exclude service tax while cal 30,000 limit u/s 194C for 1 time transaction hence in ur case its not excedding 30,000 (excluding service tax ) hence no tds is applicable in this case