Tds

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yD (Querist)
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07 December 2014 our company's security raise a bill service bill amount 20225 (18000+2225(12.36%)).now suggests me which amount tds will be deduct ?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 December 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

srinivasan

srinivasan (Expert)
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08 December 2014 To give effect to the circular You should ensure that the agreement / work order between the parties and the invoice raised by the service provider shows the service tax component separately. In the case of all inclusive price TDS has to be effected on the invoice amount only

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