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Amt. on which TDS should be deducted

TDS / TCS 6072 views 15 replies

Hi.....pls help me with this query.

If a CA charges professional fees from his client and also collects service tax. Then on wht amt. should the client making the payment deduct TDS whether he should deduct TDS only on the amt. shown as professional fees or on the whole amt.(including service tax).

Replies (15)

TDS should be deducted on the total amount i.e. professional fee + service tax thereon. U/s 194 J TDS is deducted on the entire amount.

TDS should be deducted on the total amount i.e. professional fee + service tax thereon. U/s 194 J TDS is deducted on the entire amount.

If there is any out of pocket expenses charged separately, then on that do not deduct TDS, but also note that out of pocket expenses charged along with the professional fees by the vendor will be totally chargeable to TDS on professional fees u/s 194J.

Hope helps you.

Regards

Rashmi Gandhi

thnk you for dis info.

Total Amount

I agree with Rashmi answer.

hi....pls clarify whether a separate invoice should be raised for out of pocket expenses?? If i show it separately in the invoice for professional fees itself then will it attract TDS??

YES TDS TO BE DEDUCTED ON TOTAL AMOUNT INCLUDING SERVICE TAX AS PER SEC 194J

IF OUT OF POCKET EXPENSES INCLUDED IN PROFEESIONAL CHARGES THAN TDS WILL BE DUDEUCTED ON THEM

BUT IF YOU THEM SEPARATELY TDS WILL BE DEUCTED ON PROFESSIONAL CHARGES ONLY.

on the amount inclusive of service tax

 

Originally posted by :sumit nagpal

" Hi.....pls help me with this query.
If a CA charges professional fees from his client and also collects service tax. Then on wht amt. should the client making the payment deduct TDS whether he should deduct TDS only on the amt. shown as professional fees or on the whole amt.(including service tax).
"


 

Can we expect from our elected Representatives in ICAI that they will raise these issues before the CBDT for the greater benefit of CA Community.

Deduction of TDS on Service Taxes and On reimbursement of incurred expenses. I can not understand how these collections can be termed as a sum by way of fees for professional services.

Furthermore, in my opinion a proper representation should also be made before the Ministry of Finance for reconsideration of rate of TDS on our professional services. In my opinion 10% TDS is very high.

AS PER NOTIFICATION NO-75/ NO NEED TO DEDUCT  TDS ON SERVICE TAX AMOUNT AS PER CBDT NOTIFICATION  & PROVISION FOR REAMBURSMENT THAT IF BILL NOT MADE SEPERATLY SO LIABLE FOR DEDUCTION ,FULLY AMOUNT OF BILL

TDS is liable to be deducted on the whole sum.

Hi, Basic question,

Service Tax credit to be taken n gross value of input services or to be taken on net value of Input services deducting TDs on Value of input Services.  

regards

Chetan

 

Originally posted by :sumit nagpal
" Whether any collection agency who is in the business of recovery of financial chgs on behalf of Banks/NBFC can obtain TDS exemption certificate,so as to have lower rate of TDS deducted from its payments it recieves from its clients "


 

Originally posted by :sumit nagpal
" Whether any collection agency who is in the business of recovery of financial chgs on behalf of Banks/NBFC can obtain TDS exemption certificate,so as to have lower rate of TDS deducted from its payments it recieves from its clients "


 


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