Tds

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 April 2014 Dear All,

According to the notification no. 25/2012- Service tax on legal Services under RCM, Tds is to be deducted on which amount? For eg: If XYZ Co.(whose Turnover is more than Rs. 10 lacs)enjoys services provide by an advocate of Rs. 50000/- (which is exclusive of ST)and under RCM the service receiver is required to pay 100% ST(i.e.12.36%)amounting to Rs.6180/-, in this case TDS is to be deducted on which amount- Rs. 56180/- or Rs. 50000/-. Plz reply ASAP
Awaiting for reply.

Thanks in advance.

Rupesh Jain

Rupesh Jain (Expert)

17 April 2014 TDS will deducted on advocate bill

as you remember as per income tax tds will deductible on amount paid or payable to person.

Message likes : 1 times

Nikhil Kaushik

Nikhil Kaushik (Expert)

17 April 2014 you need to deduct tds only on Rs 50000. For this you need to refer to CBDT circular 1/2014 which provides that TDS need not be deducted on service tax amount if it has been separately mentioned. given that in reverse charge mechanism the lawyer only mention amount payable to him, you need not deduct TDS on service tax portion.

Message likes : 1 times

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