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Relating to tds

Harsha Vardhan (Article Student) (42 Points)

23 March 2016

Mr. X&co is a charted accountants firm and providing services to Mr. Y, a company and charges 10000rs as professional fee and service tax there on is 1450rs so total 11450. My question is while paying to Mr. X& co, Mr. Y is to deduct tds u/s 194j, On what amount does tds is to be deducted? On 10000rs or on 11450rs.plz clarify

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18 Replies

Deepak T Shetty (Chartered Accountant) (121 Points)
Replied 23 March 2016

It is only on Basic amount, you need not deduct on service tax portion.

1 Like

Kamal vashist (Accountant) (183 Points)
Replied 23 March 2016

TDS is DEDUCTED on only Rs10000

1 Like

Punith (Article assistant) (107 Points)
Replied 23 March 2016

TDS should be deducted only on 10000 rs i.e 1000 rs total payment should be 9000+1450.

CA Narender Lamba (ACA) (109 Points)
Replied 23 March 2016

Tds deducted on rs 10000.

CA Neha Gupta (Managing Partner LNG & Associates) (1839 Points)
Replied 23 March 2016

Agree. It's the basic income on which TDS is deducted. It can't include any service tax.

Arun choudhary (articalship) (153 Points)
Replied 23 March 2016

No. Tds is only deduct on income. therefore TDS is to be deducted on the amount exclusive of service tax if the service tax amount is shown seprately.However if Service tax amount is not shown seprately then in such TDS is deduct on TOTAL amount.

Nithin (Finance Manager) (39 Points)
Replied 23 March 2016

under sec 194j

Amit Kanunga (Article Assistant and Post Gradute) (644 Points)
Replied 23 March 2016

TDS will be deducted only on Gross Amount thats Rs. 10,000 and not on Service tax Amount.

Krishna (student) (654 Points)
Replied 23 March 2016

Tds should be deducted only on gross amount I,e is rs.10000

Krishna (student) (654 Points)
Replied 23 March 2016

Tds should be deducted only on gross amount I,e is rs.10000

Naveen Reddy ( Article Student) (82 Points)
Replied 23 March 2016

Service tax portion has to be excluded from amount while deducting TDS at the time of payment. So TDS is to be deducted on Rs 10,000 only .

Mukesh Katara (Account manager) (533 Points)
Replied 24 March 2016

Tds deducted only Gross amount .....also note if payment made to person for professional services during the year exceed Rs 30000 than tds should be deducted such payment...in your case tds not deducted