Cbdt circular dated 13.1.2014_stnot to be charged seperately
This query is : Resolved
20 January 2014
Under the CBDT circular,the Board has decided that wherever in terms of the agreement/ contract between the payer and the payee, the service tax component comprised in the amount payable to a resident is indicated separately, tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without including such service tax component.
Kindly clarify whether the same should be required on agreement specifically or ST charged separately on Invoice will suffice.
This is because with many vendors there are no such agreements/contracts.
Kindly clarify whether the same should be required on agreement specifically or ST charged separately on Invoice will suffice.
This is because with many vendors there are no such agreements/contracts.
20 January 2014
Agreement may not be required in written form as it is not mandated in circular
.
.
If servicetax is shown seperately in invoice it will be enough
.
.
If servicetax is shown seperately in invoice it will be enough
20 January 2014
Thanks for the guidance. Kindly also let us know the date of applicability of this circular.
20 January 2014
Generally its applicable from date of issue of notification!
However if no TDS is deducted earlier also then also it is valid!
Thx
However if no TDS is deducted earlier also then also it is valid!
Thx
20 January 2014
Ganesh Sir,
As per the circular it is written that "The Board has decided that wherever in terms of the agreement/ contract between the payer and the payee"; Terms of agreement are there in a written agreement only as per my point of view. So it is implied here that the agreement should be written only.
As per the circular it is written that "The Board has decided that wherever in terms of the agreement/ contract between the payer and the payee"; Terms of agreement are there in a written agreement only as per my point of view. So it is implied here that the agreement should be written only.
21 January 2014
Agreement need not be in writing because in accordance with the Indian contract act, oral agreements are also valid.
Hence service tax amount seperately mentioned in the invoice will preclude one from deducting tds on it.
Hence service tax amount seperately mentioned in the invoice will preclude one from deducting tds on it.
21 January 2014
Also in cir. no where mandated to have written agreement.
Thx
Thx
26 January 2014
The terms of agreement can be oral. The circular only says about agreement and not 'Written Agreement'. The intention behind the circular is to deduct TDS on income if given separately in the invoice. Therefore the essential condition is that service tax should be indicated separately.
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