How to calculate Service tax when TDS deducted
This query is : Resolved
31 March 2009
Please guide me how to calculate Service tax liability.
We have raised bills to our one of the customer. They give on account payment against our various bills during the year & at the year end i.e. 31st march, they debit our account for TDS. We comes to know TDS amount only in the month of April OR May when we reconcile ledger with them.
Shall I pay service tax only on Cheque amount & ignore service tax on TDS deducted & debited to our Account.
We have raised bills to our one of the customer. They give on account payment against our various bills during the year & at the year end i.e. 31st march, they debit our account for TDS. We comes to know TDS amount only in the month of April OR May when we reconcile ledger with them.
Shall I pay service tax only on Cheque amount & ignore service tax on TDS deducted & debited to our Account.
31 March 2009
Absolutely incorrect to deduct TDS from the taxable amount.
Service tax is payable on the gross amount charged to the client.
The TDS deducted is not to be construed as payment not received as you shall be served with the TDS certificate.
Therefore service tax payable on amount of invoice raised by you i.e. payment received plus the TDS deducted.
Service tax is payable on the gross amount charged to the client.
The TDS deducted is not to be construed as payment not received as you shall be served with the TDS certificate.
Therefore service tax payable on amount of invoice raised by you i.e. payment received plus the TDS deducted.
02 April 2009
Please also guide me as I don't know how much TDS deducted by party. I comes to know TDS amount only after 31st March, than how to calculate service tax.
03 April 2009
In my view the TDS deducted is presumably paid to the central government and should be considered as a payment made to you albeit indirectly.
In the event that at the time of receipt you are not aware whether TDS has been deducted / what amount then it would be open to pay the ST on the amount received ( worked out backwards) and when the informatioin is received then pay the addtional ST. This may or may not be accepted by department however.
In the event that at the time of receipt you are not aware whether TDS has been deducted / what amount then it would be open to pay the ST on the amount received ( worked out backwards) and when the informatioin is received then pay the addtional ST. This may or may not be accepted by department however.
04 April 2009
Thank you very much.
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
- CAPITAL GAIN BASE ON NOTIFICATION
- NRI starting business in India
- Difference between Date of Payment and Date of Deduction?
- ITDS U/S.194T of Firm
- Unregistered suppliers utility
- Non-Compliance documents have not been submitted by the contractors debited
- EXPORT COMMERCIAL INVOICE HSN CODE
- Capital gain on sale and purchase of plot
- FORM 141 SDV query
- Invertaded duty struture
- How to pay remaining amount of TDS after due date?
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
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
