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Tds on service tax under reverse charge

Shiv Jindal (Accounts Officer) (46 Points)

20 September 2012

I want to to know that if have got the bill of taxi hiring for Rs 10000/- (Service Provide has not charge any Service Tax) and have deposit the Amt of Service Tax 494/- (10000*40%*12.36). In this situation TDS will be deducted on Rs 10000/- or 10494/-.

Shiv Jindal

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5 Replies

Sumit Grover (Chartered Accountant ) (3652 Points)
Replied 20 September 2012

on Rs. 10000 only

Shiv Jindal (Accounts Officer) (46 Points)
Replied 20 September 2012

Dear Sumit,

Thanks for prompt action. Can you please tell me rule or any notification in this referance?

Shiv jindal

CA CS Amit S. Kedia (KKCL-KILLER JEANS) (6920 Points)
Replied 20 September 2012

TDS is to be deducted on the actual expenses incurred or advance made for such expenses.Where Service tax is not charged on the bill then it is not your expense and you are also not going to pay for service tax to the service provider.

Accordingly, TDS will be deducted on the expenses booked by you. when service provider gets reimbursement of ST from you then you can deduct the TDS

GORU RAMYA (EXECUTIVE OFFICER FINANCE) (21 Points)
Replied 20 September 2012

As we are paying Rs.10000/- only to the vendor, we are supposed to deduct TDS only on Rs.10000/-. The balance 494 we are paying to ST not to the vendor. so we sholud not deduct TDS on total value which includes Reverse charge mechanism