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TDS on Professional Services


Hi,

for a service firm, when the payment is paid (Professional Fee + Service Tax), can someone help if the TDS should be applicable on the entire invoice value or is it only on Professional fee excluding Service Tax?

Eg:

Prof Fee  : Rs 100,000

Serv.Tax : Rs 10,300

Total : Rs 110,300

Is the TDS applicable on Rs 100,000 or on Rs 110,300 ???

 

if there is any ITO circular to this effect, it will be of help.

thanks,

 
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Accountant/Learner


 

Tds have to deduct including service tax..

 
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Deputy Manager Finance


Tax to be deucted on full bill value, only in case of rent a specific circular is availabe for not deduting TDS on service Tax [CBDT Circular: CIRCULAR NO. 4/2008, (dated 28.04.2008] in light of the same we have to infer that tds to be deducted including service tax on all other cases.

 
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Asstt Manager (Accounts & Finance)

TDS will be deducted on Full Value i.e. Rs. 110300/-

ratan

 
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CA-FINAL & M.COM


Originally posted by : Deepak Narayanan

Tax to be deucted on full bill value, only in case of rent a specific circular is availabe for not deduting TDS on service Tax [CBDT Circular: CIRCULAR NO. 4/2008, (dated 28.04.2008] in light of the same we have to infer that tds to be deducted including service tax on all other cases.

 
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FCA, Future CA


Full value and not the amount excl Service Tax.

 

"Any amount paid"  means full amount.

 
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tds would be deducted including service tax i.e. on Rs.1,10,300/-.

 
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TDS IS DEDUCTED ON FULL AMOUNT INCLUDING SERVICE TAX IN ALL SECTIONS OF TDS EXCEPT SECTION 194-I WHERE TDS IS DEDUCTED ON AMOUNT EXCLUDING SERVICE TAX.

 
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Originally posted by : CA.Rakesh Kumar

TDS IS DEDUCTED ON FULL AMOUNT INCLUDING SERVICE TAX IN ALL SECTIONS OF TDS EXCEPT SECTION 194-I WHERE TDS IS DEDUCTED ON AMOUNT EXCLUDING SERVICE TAX.

 Agreed.

 
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Chartered Accountant


Tax to be deucted on full bill value, only in case of rent a specific circular is availabe for not deduting TDS on service Tax [CBDT Circular: CIRCULAR NO. 4/2008, (dated 28.04.2008] in light of the same we have to infer that tds to be deducted including service tax on all other cases.

 
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