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Income tax on professional fee

Anil Kumar (consultant) (51 Points)

05 February 2016

Sir, I get Rs 11.35 lacs for fee, and pay Rs. 1.55 lacs towards service tax total paid by employer is Rs. 12.90 lacs, my question is whether income tax shall be deducted on Rs. 11.35 lacs or, Rs. 12.90 lacs thanks and regards Anil

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9 Replies

CA Mehul Chudasama (Chartered Accountant) (618 Points)
Replied 05 February 2016

if 1.55 Lacs is seprately shown in Professional Bill As Serivice Tax Amount and he have service tax number which is printed on Bill then Deduct TDS on 11.35 or else on 12.90 Lacs

1 Like

Gourav (44) (70 Points)
Replied 05 February 2016

TDS should be deducted only on professional fees and not on service tax.

1 Like

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 05 February 2016

As per Circular No. 1/2014 dated 13th Jan 2014

TDS is to be deducted on the amount exclusive of service tax if the service tax amount is shown separately. As in most of the cases, Service Tax Amount is disclosed separately in the Invoice, TDS in all such cases would be deducted on the amount exclusive of service tax.

However, in case the Service Tax amount is not disclosed separately in the invoice (rare case), TDS in such cases would be deducted on the total amount i.e. the amount inclusive of Service Tax.

1 Like

Pawan Kumar Sharma (Dy Mgr. Accounts) (246 Points)
Replied 06 February 2016

Totally agreed with Vishal Ji

Mukesh Kuriyal (Advocate) (2216 Points)
Replied 07 February 2016

Professional income comes under section 194J. So whatever Income you have you should fill sno 56 No books of account of P & L account showing Gross income As Total Income without TDS,Net Income also total Income ,expenses as how much you can and lastly net profit. On this income calculate the TAX

CA Rizwan Saifi (Founder @ CharteredHelp) (117 Points)
Replied 07 February 2016

Deduct Tds on Rs. 11.35 lakh if service tax is shown sepretly otherwise on full amount ..

Nikhil (x) (34 Points)
Replied 07 February 2016

You have written, that you have received money from your employer but S. Tax is not applicable on services provided by an employee to its employer. Am I missing something here? Yes, tds would be deducted on amount exclusive of service tax provided such amount is sperately mentioned in bill.