Tds

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PARDEEP (Querist)
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21 January 2015 if any professioanl issues to bill of Rs 40000.00 + service tax @12.36%(4944) = 44944.00 then a person who pays amount to professional person is after deducting TDS. on which amount TDS is decucted Rs40000.00 or 44944( including S.tax)

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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21 January 2015 no tds applicable on service tax portion as per circular no 1/2014 so only on 40,000 tds needs to be deducted u/s 194J

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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22 January 2015 TDS to be deducted on amount excluding service tax.

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--
http://law.incometaxindia.gov.in/DIT/Circulars.aspx

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