Hey frenz...
Is TDS applicable on software renewal fees ?? The vendor has charged both Sales tax and Service Tax on the renewal fee.
Thanks in advance
Vidisha :)
Vidisha Jain (CA FINAL) (155 Points)
31 December 2009Hey frenz...
Is TDS applicable on software renewal fees ?? The vendor has charged both Sales tax and Service Tax on the renewal fee.
Thanks in advance
Vidisha :)
Amir
(Learner)
(4016 Points)
Replied 31 December 2009
If the Bill is cmposite then TDS u/s 194 C / 194 J is applicable on the entire amount..and if the vendor issues a separate invoice in which he has charged Sales Tax and another invoice in which he has recovered Service tax then TDS WOULD APPLY ONLY IN CASE OF INVOICE ON WHICH VENDOR HAS CHARGED SERVICE TAX
suraj yadav
(Sr. Accounts Executive)
(63 Points)
Replied 31 December 2009
YES ,TDS will be applicable. But only on service charge ,not on total amount of bill . For calculation of TDS service tax should also be exclude from service charge.
Amir
(Learner)
(4016 Points)
Replied 31 December 2009
Hi Suraj The amount of Service Tax has to be excluded only in case of RENT U/s 194 I for which there is a Board Circular..AND NOT IN RESPECT OF ANY OTHER PAYMENT...
suraj yadav
(Sr. Accounts Executive)
(63 Points)
Replied 31 December 2009
thank u amir for rectifying me..
anuj dhingra
(Accounts Executive)
(152 Points)
Replied 31 December 2009
Hi
I m agree with amir. Suraj Is wrong.
If the Bill is cmposite then TDS u/s 194 J is applicable on the entire amount..and if the vendor issues a separate invoice in which he has charged Sales Tax and another invoice in which he has recovered Service tax then TDS WOULD APPLY ONLY IN CASE OF INVOICE ON WHICH VENDOR HAS CHARGED SERVICE TAX
nikhil bapat
(CA)
(212 Points)
Replied 02 January 2010
TDS would apply on the entire bill amt in case there is a composite invoice including VAT and Service Tax
CAclubindia
