Service tax on contractor

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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)

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)

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)

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

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### 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.

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### 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.

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### **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.

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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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