Clarification in gross up payment ***urgent**
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
22 November 2011
Dear Experts
How to calculate the TDS & service tax for gross up payments. We have to pay service payment to non residents, party will not accept the TDS & Service tax. We have to bear
such expenses.Plz help us to calculate
Invoice value - 100
S.tax (10.3%) - 11.48 ( 100*10.3/89.70)
TDS (10%) -12.39 (100+11.48)*10/90
Total - 123.87
Can u confirm the above workings correct?
How to calculate the TDS & service tax for gross up payments. We have to pay service payment to non residents, party will not accept the TDS & Service tax. We have to bear
such expenses.Plz help us to calculate
Invoice value - 100
S.tax (10.3%) - 11.48 ( 100*10.3/89.70)
TDS (10%) -12.39 (100+11.48)*10/90
Total - 123.87
Can u confirm the above workings correct?
CA SUMiT PATWARi
(Expert)
23 November 2011
yes the calculation is correct.
you have to finally pay to vendor 100
S/tax to govt 11.48
and tax on payment to NR to govt 12.39
you have to finally pay to vendor 100
S/tax to govt 11.48
and tax on payment to NR to govt 12.39
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