Advertisement bill

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Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2014 I received a bill for our Company Advertisement . Advertiser charge 12.36% Service Tax on Bill. Kindly explain me may I deduct TDS while making payment to Advertiser & if Yes What is the % OF TDS while making payment.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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18 April 2014 percentage of tds shall depend on the constitution of the service provider. Refer Section 194C.

further, no need to deduct tds on service tax portion.

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Sandeep Dharar

Sandeep Dharar (Expert)
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18 April 2014 If it crosses the limit u/s 194C then u have to deduct TDS.

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Sandeep Dharar

Sandeep Dharar (Expert)
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18 April 2014 U should deduct TDS u/s 194C if the Advertisement Amt is greater than 75K in the FY or greater than 30K in a single payment(bill). The rate should b 1% for Individual/Huf & 2% for any other assessee.

Note:-

The amount should b exclusive of ST.

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Querist : Anonymous

Querist : Anonymous (Querist)

20 May 2014 Dear Sir ,

While Paying amount to Advertiser I have to Deduct TDS on Gross amount which includes Service Tax OR only on Billing Amount . Kindly explain...

Nikhil Kaushik

Nikhil Kaushik (Expert)
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20 May 2014 only on the billing amount...you can leave out the service tax amount for the tds purposes.

Sandeep Dharar

Sandeep Dharar (Expert)
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20 May 2014 While deducting TDS u must exclude the ST portion.

Ex:-

Gross Amount 100L
ST 12.36L
Total 112.36L

So TDS should b deducted on 100L n not on 112.36L.

Querist : Anonymous

Querist : Anonymous (Querist)

05 August 2014 Dear Sir ,

As I discuss with my Auditor He told me that TDS Will be deducted on Gross amount of Bill not on Basic amount ?

Please explain me that if Proprietor provides bill for Rs.67416.00 includes service tax then I have to deduct TDS 1% OR 2% kindly explain.....

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Sandeep Dharar

Sandeep Dharar (Expert)
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05 August 2014 The rate for proprietor is 1%. The amount on which TDS will b deducted should b exclusive of ST.

Like if amount in the bill is say Rs. 1,000
So calculation should b as under

1000/112.36*112.36 = 1000.

So TDS will b deducted on Rs 1000/-.
If mentioned separately in invoice then it will b exclusive of ST.

Querist : Anonymous

Querist : Anonymous (Querist)

05 August 2014 Dear Sir ,

When we are paying the billing amount with service tax then I think we have to deduct 1% TDS on Gross Billing amount which includes Service Tax .

Kindly explain.....

Sandeep Dharar

Sandeep Dharar (Expert)
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05 August 2014 No, TDS should b exclusive of service tax.

Visit following link for further details:--

http://www.charteredclub.com/tds-on-service-tax/

Note:- If the amount is including ST then TDS should b on Gross amount.

Querist : Anonymous

Querist : Anonymous (Querist)

05 August 2014 Dear Sir ,

I read all clarification as per the Links . As per all links we have to pay TDS on Gross billing amount means For example

Billing Amount Rs.60,000.00 +Service Tax Rs.7416=67416.00 then TDS 1% on Proprietor will be deducted .

Kindly explain.....

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Sandeep Dharar

Sandeep Dharar (Expert)
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05 August 2014 Yes dear that's what I explained above. If ST part is separately mentioned then TDS will b exclusive of ST. Otherwise it will b on the Gross amount.

Querist : Anonymous

Querist : Anonymous (Querist)

05 August 2014 Dear Sir ,

yes Sir . I will deduct TDS 1% ON Gross bill amount of Rs.67416.00 . TDS 1% = 674.00 . So payment to Vendor = 66742.00.

Kindly confirm.......

Sandeep Dharar

Sandeep Dharar (Expert)
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05 August 2014 Yes dear u r absolutely right.

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Querist : Anonymous

Querist : Anonymous (Querist)

05 August 2014 Dear Sir ,

THANKS A LOT......................

Sandeep Dharar

Sandeep Dharar (Expert)
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05 August 2014 U R Welcome Dear,

U can convey ur thanks by hitting the thanks button.