No tds on service tax portion

Save Share

This query is : Resolved

ekta khandelwal (Querist)

17 January 2014 1No Tds to be deducted on service tax portion -whether this amendment is applicable only on 194J or all section under Chapter XVII as per circular 1/2014 dated 13th Jan 2014.
2 effective from when
3 whether written agreement or contract must or merely by bill which have seperate details of service tax mentioned will be ok.

Vishal

Vishal (Expert)

17 January 2014 Please find the response below with respect to each of your queries:
1. This amendment shall be applicable for all sections under Chapter XVII
2. Though it is mentioned that Circular may be brought to the notice of all officers, however Clarity is required on that point.
3. It has been specifically mentioned in the circular that wherever in terms of the AGREEMENT/CONTRACT (and not the bill) between the payer and the payee,the service tax component mentioned separately, tax shall be deducted without including service tax component.

AVTAR SINGH

AVTAR SINGH (Expert)

17 January 2014 In my opinion, Agreement/Contract can be verbal. therefore it is not necessary that there must be a written agreement/contract. But the service tax must be charged and indicated separately in the invoice/bill.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

17 January 2014 1) Applicable to all sections in chapter XVIIB.

2) W.e.f 13.1.2014

3) Contract/ agreement shall not be in writing because circular 1/2014 dated 13-1-2014 does not mandates 'written agreement/contract'.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now