Deduction of tds in case of reverse mechanism of service tax
This query is : Resolved
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
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.
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