30 October 2013
NORMALLY TDS IS APPLICABLE ON GROSS AMOUNT OF BILL ,INCLUSIVE OF SERVICE TAX (EXCE: RENT)BUT ST IS NOT AN INCOME OF SERVICE PROVIDER THEN WHAT IS LOGIC BEHIND THIS CACULATION?WHAT IS THE TAXABLE INCOME OF SERVICE PROVIDER IN HIS IT COMPUTATION?
kindly refer to below file where i have explained in detailed how it is being made along with the relevant circulars supporting to my answer .. . https://www.caclubindia.com/share_files/tds-on-service-tax-on-all-payments-except-rent-56695.asp
30 October 2013
Logically speaking, TDS is to be deducted from the income of the recipient. Service tax is not an income of the service provider as the service provider would be collecting service tax from the service receiver and depositing this amount with the govt. So, the service tax collected is not an income of the service provider and the service provider is merely acting as an agent of the Govt.
31 October 2013
Excess to be refunded : The excess payment to be refunded would be the difference between:
the actual payment made by the deductor to the credit of the Central Government; and the tax deductible at source
Excess payment discovered during financial year In case such excess payment is discovered by the deductor during the financial year concerned, the present system permits credit of the excess payment in the quarterly statement of TDS of the next quarter during the financial year. Excess payment discovered after financial year
In case, the detection of such excess amount is made beyond the financial year concerned, such claim can be made to the Assessing Officer (TDS) concerned. However no claim of refund can be made after two years from the end of financial year in which tax was deductible at source.
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