Service tax on contractor

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 April 2015 Dear Sir.,
Kindly tell me If a contractor (may be Company,individual, HUF) charges basic amount Rs.10000/- & ST@12.36% is Rs.1236/-, Net amount is Rs.11236.In this case we can deduct tds excluding Service tax amount or including st amount.
Thanks
R.R.DAS

CA Anjana Grover

CA Anjana Grover (Expert)
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23 April 2015 Hi,

TDS is to be deducted only on Rs.10000 i.e. exluding service tax amount.

for better understanding go through the following Link:
https://www.charteredclub.com/tds-on-service-tax/

CA Anjana Grover

CA Anjana Grover (Expert)
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23 April 2015 Hi,

TDS is to be deducted only on Rs.10000 i.e. exluding service tax amount.

for better understanding go through the following Link:
https://www.charteredclub.com/tds-on-service-tax/

Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2015 What is the procedures of TIN & CST registration in sales tax department.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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24 July 2025 Sure! Here’s a clear answer to your main question and a brief overview about TIN & CST registration procedure:

---

### 1. **TDS Deduction on Contractor Payment with Service Tax**

* When a contractor charges **Basic Amount** = ₹10,000
* Service Tax @12.36% = ₹1,236
* Total Invoice = ₹11,236

**TDS should be deducted only on the Basic Amount of ₹10,000**, **excluding service tax**.

**Reason:**
Service Tax is a separate tax component and not part of the contractor’s income. TDS applies only to the taxable value or service charges, not on taxes collected on behalf of the government.

---

### 2. **Procedure for TIN & CST Registration in Sales Tax Department**

* **TIN (Taxpayer Identification Number):**
Issued under the VAT system, it's a unique ID for every dealer registered for VAT.
You need TIN to legally trade goods across states and to comply with VAT regulations.

* **CST (Central Sales Tax):**
CST is applicable on interstate sale of goods. Registration under CST is mandatory for dealers selling goods outside the state.

---

### **Steps for TIN & CST Registration**

1. **Application:**
Apply online or at the local VAT/Sales Tax office of your state. Most states have online portals.

2. **Documents Required:**

* Proof of business (Partnership deed, Incorporation certificate, etc.)
* PAN card of the business entity
* Address proof of the business premises
* Bank details
* Photograph of proprietor/partners/directors

3. **Filing Form:**

* Fill the VAT registration form (varies state to state).
* For CST, often the TIN registration itself serves for CST purposes, but separate CST registration might be needed.

4. **Verification:**
The department will verify the documents and inspect premises if required.

5. **Issuance of TIN & CST Registration Certificate:**
After verification, you get your TIN & CST registration number.

---

If you want, I can help you with a **sample application form or checklist** for the registration process. Just let me know!

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