Queries on tds and service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 May 2014 1)Laundry Service Provider in Delhi gave bill of April’14 to the hotel in delhi where no service tax is charged by Laundry because it has not registered for Service Tax from the current month i.e. May’14, hotel wants to deduct TDS on the bill.
Now my Questions are:

a)Can hotel deduct TDS though laundry is a local (i.e. not registered), if yes what will be the rate of TDS? On what amount is TDS to be calculated? Does TDS include EC and SHEC?

b)Can hotel show Service Tax given and TDS deducted amount in same document from whom it is taking services?

c)Does hotel needs any Authorities to Deduct Tax?

2)Does Luxury Tax have any relation with Service Tax?

Sandeep Dharar

Sandeep Dharar (Expert)
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17 May 2014 Yes hotel can deduct TDS u/s 194C exclusive of Service Tax.

194C Conditions:-

If the amount crosses Rs. 30K in single Bill
and Rs. 75K in agreegate.

Rate:- 1% for Ind/HUF
2% for Others

ST should b shown in the Invoice and for TDS hotel will issue Form 16A.

No relation of luxury Tax with ST.

No only TAN is required for TDS Deduction.

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Querist : Anonymous

Querist : Anonymous (Querist)

17 May 2014 Under which heads TDS does laundry falls?
Thanks for the above reply!!!!

Sandeep Dharar

Sandeep Dharar (Expert)
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17 May 2014 It is mentioned above u/s 194C.

Convey ur thanks by hitting the thanks button.

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