Service tax on services provided by bis
This query is : Resolved
23 December 2014
Sir,One of my client has received services of testing from BIS (Bureau of indian standards).
I want to know about service tax applicability and TDS on these payments.
Amount is around 4 Lacs
My question is because :
1) I have read somewhere that support services by govt or govt agency is not taxable in the hands of govt for service tax matter.
2) and BIS has told my client to not deduct TDS though they have not provided any exemption certificates in this regard.
Prompt reply would be appreciated.
Thanks in advance.
I want to know about service tax applicability and TDS on these payments.
Amount is around 4 Lacs
My question is because :
1) I have read somewhere that support services by govt or govt agency is not taxable in the hands of govt for service tax matter.
2) and BIS has told my client to not deduct TDS though they have not provided any exemption certificates in this regard.
Prompt reply would be appreciated.
Thanks in advance.
23 December 2014
1. you are right under RCM if your client is a business entity your client has to pay service tax.
2. Being Govt. entity no TDS be made.
2. Being Govt. entity no TDS be made.
23 December 2014
Sir,One of my client has received services of testing from BIS (Bureau of indian standards). I want to know about service tax applicability and TDS on these payments. Amount is around 4 Lacs My question is because : 1) I have read somewhere that support services by govt or govt agency is not taxable in the hands of govt for service tax matter. 2) and BIS has told my client to not deduct TDS though they have not provided any exemption certificates in this regard. Prompt reply would be appreciated. Thanks in advance.
23 December 2014
Section 196 in The Income- Tax Act, 1995
196. 2 Interest or dividend or other sums payable to Government, Reserve Bank or certain corporations Notwithstanding anything contained in the foregoing provisions of this Chapter, no deduction of tax shall be made by any person from any sums payable to-
(i) the Government, or
(ii) the Reserve Bank of India, or
(iii) a corporation established by or under a Central Act which is, under any law for the time being in force, exempt from income- tax on its income,
Bureau of Indian Standards (BIS), the National Standards Body has been successfully promoting and nurturing standards movement within the country since 1947. BIS came into existence on 01 April 1987 through an Act of Parliament dated 26 November 1986.
In view of the above no TDS on BIS.
Your reading on service tax is right that is why service tax is payable by your client if he is a business entity und
196. 2 Interest or dividend or other sums payable to Government, Reserve Bank or certain corporations Notwithstanding anything contained in the foregoing provisions of this Chapter, no deduction of tax shall be made by any person from any sums payable to-
(i) the Government, or
(ii) the Reserve Bank of India, or
(iii) a corporation established by or under a Central Act which is, under any law for the time being in force, exempt from income- tax on its income,
Bureau of Indian Standards (BIS), the National Standards Body has been successfully promoting and nurturing standards movement within the country since 1947. BIS came into existence on 01 April 1987 through an Act of Parliament dated 26 November 1986.
In view of the above no TDS on BIS.
Your reading on service tax is right that is why service tax is payable by your client if he is a business entity und
23 December 2014
Section 196 in The Income- Tax Act, 1995
196. 2 Interest or dividend or other sums payable to Government, Reserve Bank or certain corporations Notwithstanding anything contained in the foregoing provisions of this Chapter, no deduction of tax shall be made by any person from any sums payable to-
(i) the Government, or
(ii) the Reserve Bank of India, or
(iii) a corporation established by or under a Central Act which is, under any law for the time being in force, exempt from income- tax on its income,
Bureau of Indian Standards (BIS), the National Standards Body has been successfully promoting and nurturing standards movement within the country since 1947. BIS came into existence on 01 April 1987 through an Act of Parliament dated 26 November 1986.
In view of the above no TDS on BIS.
Your reading on service tax is right that is why service tax is payable by your client under reverse charge mechanism if he is a business entity.
196. 2 Interest or dividend or other sums payable to Government, Reserve Bank or certain corporations Notwithstanding anything contained in the foregoing provisions of this Chapter, no deduction of tax shall be made by any person from any sums payable to-
(i) the Government, or
(ii) the Reserve Bank of India, or
(iii) a corporation established by or under a Central Act which is, under any law for the time being in force, exempt from income- tax on its income,
Bureau of Indian Standards (BIS), the National Standards Body has been successfully promoting and nurturing standards movement within the country since 1947. BIS came into existence on 01 April 1987 through an Act of Parliament dated 26 November 1986.
In view of the above no TDS on BIS.
Your reading on service tax is right that is why service tax is payable by your client under reverse charge mechanism if he is a business entity.
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