Querry on TDS & service tax:

This query is : Resolved

paresh zatakia (Querist)
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18 June 2009 Dear Colleagues

Mr.A,Mr.B,Mr.C,& Mr.D entered into a joint venture for a setting up an I.T.Park. Mr.C,& Mr.D prematuredly rertired from the J/V.At the time of retirement Mr.A,Mr.B paid lumpsum consideration of Rs.50 lacs to Mr.C.They mentioned that amount included amount payable to Mr.D.

Mr.C paid Rs.20 lacs to Mr.D towards his share in retirement consideration of Rs.50 lacs.There is written document which mentions this fact.But Mr.C while making payment deducted TDS Under sec194J.

Querry

Mr. D has an apprehension that since TDS has been deducted,service tax may be leviable.
Infact the amount he received is towards his share in retirement consideration of the Rs.50 lacs.

Is Mr.D liable to pay service tax on Rs.20 lacs he received towards his share in retirement consideration of the Rs.50 lacs ?

Regards
c.a.paresh zatakia

CA Hemant T Dewani

CA Hemant T Dewani (Expert)
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18 June 2009 whether it is goodwill or not if it is goodwill then service tax as wel as tds provison is not applicable
in service tax you are not render any service & in tds you are not debiting the same amount in P & L a/c
so in my opinion both act is not applicable