TDS
This query is : Resolved
06 August 2010
Namste to All!
I have an querry.Though it's old one, but kindly clear me as per recent laws,notifications or circulars.
Q-Whether TDS shall be deducted on basic value or gross value of a bill.
Case 1 -Professional Fees + service tax(in case of taking input credit and not taking credit)= Gross value
Case 2-Other service charges + Service tax (if taking credit and not taking credit)
Case 3- Rent charges + service tax(if taking credit and not taking credit)
As per my view in case 1 & 2 TDS shall be deducted on Gross value(whether taking input credit or not).But in case 3 the TDS shall be deducted on basic value only as per CBDT circular.
pleae reply urgently.
regards
Biswojit
I have an querry.Though it's old one, but kindly clear me as per recent laws,notifications or circulars.
Q-Whether TDS shall be deducted on basic value or gross value of a bill.
Case 1 -Professional Fees + service tax(in case of taking input credit and not taking credit)= Gross value
Case 2-Other service charges + Service tax (if taking credit and not taking credit)
Case 3- Rent charges + service tax(if taking credit and not taking credit)
As per my view in case 1 & 2 TDS shall be deducted on Gross value(whether taking input credit or not).But in case 3 the TDS shall be deducted on basic value only as per CBDT circular.
pleae reply urgently.
regards
Biswojit
CA Sanat Pyne
(Expert)
06 August 2010
CASE 1 TDS WILL BE DEDUCTED ON GROSS VALUE.
CASE 2 - ON GROSS VALUE
CASE 3 ONLY ON RENT
FOR BETTER CLARIFICATION
VISIT
https://www.simpletaxindia.org/2008/08/tds-on-service-tax-us-194-j-on.html
CASE 2 - ON GROSS VALUE
CASE 3 ONLY ON RENT
FOR BETTER CLARIFICATION
VISIT
https://www.simpletaxindia.org/2008/08/tds-on-service-tax-us-194-j-on.html
CMA Ramesh Krishnan
(Expert)
06 August 2010
you are correct
Refer these
for Point No. 1 & 2
circular F. NO. 275/73/2007IT(B) dated 30-6-2008.
For point no.3
CIRCULAR NO 4/2008 , Dated: April 28, 2008
Refer these
for Point No. 1 & 2
circular F. NO. 275/73/2007IT(B) dated 30-6-2008.
For point no.3
CIRCULAR NO 4/2008 , Dated: April 28, 2008
VINOD ARORA
(Expert)
06 August 2010
Except for rent payments, TDS is deducted on gross amounts paid including taxes. Availing input credit does not affect the amount on which TDS is to be deducted.
06 August 2010
Your concept is correct.
In case 1 & 2 > TDS on gross value
In case 3 > TDS on net value.
In case 1 & 2 > TDS on gross value
In case 3 > TDS on net value.
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