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deduction of tds on what amount?

This query is : Resolved 

07 February 2009 hello .

i want to pay a sum to my contractor against his bill.the bill amount is of Rs.500000,how i will deduct tds(on what amount),what will be service tax
(on what figure).Is tds is calculated on the amount including service tax...please give me true picture of tax laws.with any notification or clarification by department.its urgent .

Regards
CMA Ankur Pandey

07 February 2009 Income Tax is to be deducted on the gross amount of the bill. Pl see section 194C of the Income Tax Act,1961.

07 February 2009 plz clarify ....tds is deducted on the amount included service tax?

07 February 2009 plz clarify ....tds is deducted on the amount included service tax?

07 February 2009 TDS should be deducted after including the service tax.

07 February 2009 Yes.
TDS is to be deducted on the gross amount i.e including service tax.


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