Calculation of service tax
This query is : Resolved
vijay arora
(Querist)
18 August 2012
Kindly clarify the following situation
Ours is a service provider company. Suppose we issue an invoice for 1000 and charge 126.30 as service tax and sent it to our client.
Question is when our client deducts 2% TDS on how much value he should deduct the TDS whether on 1000 ( actual service cost ) or on 1126.30 ( the total amount of invoice )
Regards
Vijay Arora
Ours is a service provider company. Suppose we issue an invoice for 1000 and charge 126.30 as service tax and sent it to our client.
Question is when our client deducts 2% TDS on how much value he should deduct the TDS whether on 1000 ( actual service cost ) or on 1126.30 ( the total amount of invoice )
Regards
Vijay Arora
C.A Anshul Singhal
(Expert)
18 August 2012
TDS SHOULD DEDUCT ON WHOLE AMOUNT MEAN RS 1126.30.
BILL + SERVICE TAX
BILL + SERVICE TAX
18 August 2012
On Total amount i.e 1126.30 (except in case of TDS on rent 194I)
RENGARAJ R.K
(Expert)
21 August 2012
This is a long pending disputable issue. However, TDS is deductible on the amount including Service tax , i.e Rs.1126.30 in your case. I agree with the experts.
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