Biswanath (CA final stude) (56 Points)
23 January 2009Hello dear professional colleagues, can any body will help me, whether it is right decision to collect tds on service tax. As in my audit exposure, i have seen with some of my client are deducting tds on billvalue which includes service tax,
so every body please help me on this regard
Preetham S L
(CA Final Student)
(94 Points)
Replied 23 January 2009
Hi Biswanath,
Fact that TDS on Service Tax is very true. You are supposed to deduct Tax on Service Tax portion of Invoice.
Exception to the Rule : As per circular no.5 issued by CBDT, a person is not supposed to deduct TDS on Service Tax portion of Invoice raised against Rent.
sanjeet
(service)
(35 Points)
Replied 24 January 2009
YES TDS WILL BE DEDUCTED INCLUDING THE VALUE OF SERVICE TAX.
HarshaRamachandra
(Management Consultant)
(26 Points)
Replied 28 January 2009
No. I do not think you can deduct the tds on Service Tax Value.
The charging section quotes that unless there is a proviso, the service tax shall be on the total value of invoice.
Now the TDS shall also be deducted on the invoice value. ie if the invoice value is
Rs 100, Tds is @ 2.5%, S Tax is at 12.36% then the following shall follow.
INvoice value : Rs 100/-
S Tax : Rs 12.36 ( @ 12.36% on Invoice Value)
TDS : Rs 2.50/- ( @ 2.5% on the invoice value).
which result in the final cheque of RS 100+ Rs 12.36 - Rs 2.5 = 109.86 RS
Ashish M
(Chartered Accountant)
(2731 Points)
Replied 29 January 2009
DEAR ALL, KINDLY HVE A NOTE ON THE HEREWITH ATTACHED DEPT. NOTIC ON THE CLARAFICATION OF THE ABOVE RAISED QUESTION..........
ca ajay kumar
(ca)
(27 Points)
Replied 13 December 2011
CBDT ruling apply over commissioner ruling.
Hence no TDS is on service tax portion in case of Rent u/s 194I
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