06 October 2010
GOOD MORNING SIR, PLZ TELL ME DIFFERENCE BETWEEN SERVICE TAX & TDS.WE DEDUCT SERVICE TAX FROM TRANSPORT IN UTTARAKHAND.SIR HUM TRANSPORT SE TDS DEDUCT NAHIN KARATE HAIN .ISKA REASON KYA HAIN SIR.WE DEDUCT TDS FROM CONTRACTOR .WHY WE NOT DEDUCT SERVICE TAX FROM CONTRACTOR.IN CASE OF TDS WE TAKE SERVICES FROM PARTY.& IN CASE OF SERVICE TAX WE TAKE SERVICES FROM PARTY ALSO. SIR NO DIFFERENCE BETWEEN SERVICE TAX & TDS .SIR SERVICE TAX OR TDS KI SERVICE MAIN DIFFERENCE HAIN KYA. PLZ SIR REPLY SO SOON.
07 October 2010
Service Tax : is a form of indirect tax imposed on specified services called "taxable services". Service tax cannot be levied on any service which is not included in the list of taxable services. Over the past few years, service tax been expanded to cover new services. The objective behind levying service tax is to reduce the degree of intensity of taxation on manufacturing and trade without forcing the government to compromise on the revenue needs. The intention of the government is to gradually increase the list of taxable services until most services fall within the scope of service tax. For the purpose of levying service tax, the value of any taxable service should be the gross amount charged by the service provider for the service rendered by him.
TDS is a tax deduction of tax who pays the amount to the vendor as per the nature of service.
CAclubindia
