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Arij Shaikh (Querist)

23 September 2014 Is tds to be deducted on the invoice value exclusive of service tax or inclusive of service tax?? plz rpl at d earliest

Querist : Anonymous

Querist : Anonymous (Querist)

23 September 2014 I want to undertake some software development work as a individual, how I will deduct TDS as an individual .Kindly guide me

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

23 September 2014 TDS to be deducted on amount excluding service tax for all sections. The CBDT has issued Circular No. 1/2014 dated 13.01.2014 pointing out that the Rajasthan High Court has taken the view in CIT(TDS) vs. Rajashthan Urban Infrastructure that if as per the terms of the agreement between the payer and the payee, the amount of service-tax is to be paid separately and was not included in the fees for professional services or technical services, no TDS is required to be made on the service-tax component u/s 194J of the Act. Pursuant thereto, the CBDT has decided in exercise of powers u/s 119 that wherever the terms of the agreement/ contract between the payer and the payee, the service tax component comprised in the amount is indicated separately, tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without including such service tax component. Complete notification may be seen from below link-- https://law.incometaxindia.gov.in/DIT/Circulars.aspx

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

23 September 2014 An Individual is required to deduct TDS only if his file was subject to Tax Audit in previous Financial Year.

CA P K AGRAWAL

CA P K AGRAWAL (Expert)

24 September 2014 tds is to be deducted from net of sertice tax amount. there is no need to deduct from service tax amount also

CA P K AGRAWAL

CA P K AGRAWAL (Expert)

24 September 2014 tds is to be deducted from net of sertice tax amount. there is no need to deduct from service tax amount also

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