banner_ad

TAX DEDUCTION AT SOURCE

This query is : Resolved 
Profile Image

Profile Image

(Querist)
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.
Profile Image

CA. Aryendra

Profile Image

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.
Profile Image

Late CA Sampat Jain

Profile Image

Late CA Sampat Jain (Expert)
07 January 2008 TDS is on amount including service tax
Profile Image

Amit Sharma

Profile Image

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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
09 May 2026
Audit Manager

Kanna and Associates

Coimbatore

CA Inter

View Details
Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details
Company
08 May 2026
CHARTERED ACCOUNTANT

SHAH LADHA AND ASSOCIATE

Ahmedabad

CA

View Details
Company
07 May 2026
CA Assistant

amit desai and co

Mumbai

CA Final

View Details
Company
12 May 2026
Accounts Executive

Nafa Group

Mumbai

B.Com

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details