Service Tax On TDS
This query is : Resolved
14 October 2009
We are paying Service tax under CONSULTING ENGG. for our Foreign consultant and we paying the service tax on behalf of our consultant. we have the agreement for consultation, as per the agreement the local taxs are extra. He will raise the invoice and we will make the payment gross amount billed by our consultant.
in this case where we have to compute the gross amount?. It is inculusive of TDS are with out TDS, If it is inculusive ot TDS under which rule it should be?
in this case where we have to compute the gross amount?. It is inculusive of TDS are with out TDS, If it is inculusive ot TDS under which rule it should be?
15 October 2009
Service tax will be calculated on the gross amount paid inclusive or TDS.
It is to be noted that the payment aspect is a considerable aspect as long as payment is with respect to rendering of services.
Normally when we pay to our local vendor though we deduct TDS we still pay on the gross amount.
In your case the gross amount will be Invoice amount + TDS.
Just because the same has not been charged the agreement clearly states local taxs are extra which implies that service tax shall be on the gross amount paid to the service provider as per the terms of the agreement / arrangement
It is to be noted that the payment aspect is a considerable aspect as long as payment is with respect to rendering of services.
Normally when we pay to our local vendor though we deduct TDS we still pay on the gross amount.
In your case the gross amount will be Invoice amount + TDS.
Just because the same has not been charged the agreement clearly states local taxs are extra which implies that service tax shall be on the gross amount paid to the service provider as per the terms of the agreement / arrangement
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Sales of goods of amount Rs97 lakhs to a party
- GST rate and HSN code for sale of racing horses
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
