Deduction of tds in case of reverse mechanism of service tax
This query is : Resolved
satya ranjan swain
(Querist)
19 April 2013
I am confused with the deduction of TDS in case of reverse mechanism of service tax. I want to know that,on what amount i.e. the gross amount including 100% service tax OR the amount including the service tax which is to be paid by service provider in case of reverse mechanism, TDS will BE deducted.A numeric Example is Given Below:-
ALT-1
Taxable Service-10,000
Add S.T.@12.36%- 1236
Total -11,236
Less TDS@2% -224.72
ALT-2
Taxable Service-10,000
Add 25% of
S.T.@12.36%
(Manpower Services)-309
Total -10309
Less TDS@2% -206.18
Whichone is correct,Please tell me
ALT-1
Taxable Service-10,000
Add S.T.@12.36%- 1236
Total -11,236
Less TDS@2% -224.72
ALT-2
Taxable Service-10,000
Add 25% of
S.T.@12.36%
(Manpower Services)-309
Total -10309
Less TDS@2% -206.18
Whichone is correct,Please tell me
Deepak Birla
(Expert)
20 April 2013
TDS is to be deducted on Gross amount payable to person
If ST @ 25% payable to service provider then TDS is to be deducted as per Alternate 2.
If ST @ 25% payable to service provider then TDS is to be deducted as per Alternate 2.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Capital Gail Exemption Certificate
- Utilisation Fy 25-26 TDS challans in Fy 26-27 TDS Return
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Oct 2025 Invoices
- MSME disclosure and disallowance
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
