LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Tds on transportation charges

Sumitmehta (manager) (43 Points)

16 May 2017

Transportation Charges - Rs. 1,00,000. Service Tax on Transportation Charges - Rs. 4500/- (on 30% abatement value i.e.. Rs. 30000/-) Please confirm on which amount tds should be deducted on Rs. 1 Lac or Rs. 30,000/-.

Reply
Follow
Share

12 Replies

KRISHNANAND JHA (ACCOUNTANT) (33 Points)
Replied 16 May 2017

service Tax deducted only On 30% Of Total bill value (i.e on 30,000 out of 1,00,000)

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 16 May 2017

TDS will be deducted on Rs. 95500(100000-4500)

Sumitmehta (manager) (43 Points)
Replied 16 May 2017

If we are receiving services of 1 Lac then why we will deduct TDS only on abatement value instead of full service value.

Sumitmehta (manager) (43 Points)
Replied 16 May 2017

If we are receiving services of 1 Lac then why we will deduct TDS only on abatement value instead of full service value.

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 16 May 2017

Are you paying service tax on reverse charge?

Sumitmehta (manager) (43 Points)
Replied 16 May 2017

No. Transporter has charged service tax on abatement value 30%.

CA Altamush Zafar (GST Consultant) (15907 Points)
Replied 16 May 2017

Then if he has shown in the bill the amount of service tax then on the reduced amount i.e. 95500 tds will be deducted by virtue of circular 1/2014

Md Asif Iqbal (Accountant) (37 Points)
Replied 16 May 2017

Dear Sumit

Before deduting TDS kinldy check if transporter is not owning more than 10 goods carriage at any time during the previous year, then we, as payers (Tax deductors) have to obtain a declaration from transporter along with his copy of PAN before credit or payment to transporter, whichever is earlier. if he has less than 10 vehicals then TDS is not required to be deducted.

Regards

ASif

Farhaad Jiwani (Tax Consultant at Nagpur) (303 Points)
Replied 17 May 2017

TDS to be deducted on Rs. 1,00,000/-

VENKATESH M (MANAGER - DIRECT & INDIRECT TAXATION) (75 Points)
Replied 17 May 2017

if we are paying Service tax on RCM we should deduct TDS on 100,000 Because service tax is not charged in bill we are under obligation to discharge Service tax under Reverse charge mechanism . Kindly deduct TDS on 100,000 plz do not consider abated amount as it plays no role for Income tax act

1 Like