double taxation

This query is : Resolved

nayana (Querist)
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28 July 2008 most of the services like rent,commission,advt are liable to T.D.S and service tax also govt is coollecting tax on both the way .why the method has been followed ?same is in case of F B T.?if any one support this coment.pls reply friends.

CA Mani

CA Mani (Expert)
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28 July 2008 TDS is a Collection of tax in advance on income of other person. i.e. recipient.

Whereas Service tax is the tax on services provided by u(Provider).

CA Mani

CA Mani (Expert)
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28 July 2008 For FBT, There is no issue of service tax and TDS no! Nayana?

CA Mani

CA Mani (Expert)
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28 July 2008 Instead of TDS, u're paying advance FBT.
Service tax will be paid by provider.

I hope u're clear now!:-)

CA. Dhirendra Singh

CA. Dhirendra Singh (Expert)
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28 July 2008 Dear Nayana ,

Service tax is INDIRECT TAX and TDS is DIRECT tax

Means Service tax applicable at the time of service provide by service provider.
like that Sales tax paid by you at the time of purchase of any product, means by nature wise sales tax and service tax are same .
Because if u buy any product than you pay sales tax and if you buy any services you pay service tax .

TDS is direct tax like your income tax .
Income tax is applicable on your income however you pay sales tax from your income .
Same as above TDS is applicable on rent ,commission, etc,because these are income elements,and on that income service is also applicable ,

I hope u're clear now!:-)

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