TAX DEDUCTION AT SOURCE
This query is : Resolved
07 January 2008
I am a contractor(service). My contractee is making a deduction of 2.266% on total amount payable to me every month on the amount including service tax. my doubt is whether the amount on which TDS Rate is to be applied is inclusive of service tax or not.
CA. Aryendra
(Expert)
07 January 2008
Hi,
TDS Should be deducted on total amount of bill inclusive of service Tax.
In your problem service tax is a expenses for contractee and expenses will not be allowed to him without deduction of Requisite amount of TDS.
And Service Tax is tax on your income your are simply showing seprately in your bill.
TDS Should be deducted on total amount of bill inclusive of service Tax.
In your problem service tax is a expenses for contractee and expenses will not be allowed to him without deduction of Requisite amount of TDS.
And Service Tax is tax on your income your are simply showing seprately in your bill.
Late CA Sampat Jain
(Expert)
07 January 2008
TDS is on amount including service tax
Amit Sharma
(Expert)
08 January 2008
Dear sir,
it should be inclusive of service tax,
if u wanna re-check service tax amount use formula:-
Amount of bill/(1+rate of tax)= SERVICE TAX AMOUNT.
it should be inclusive of service tax,
if u wanna re-check service tax amount use formula:-
Amount of bill/(1+rate of tax)= SERVICE TAX AMOUNT.
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