TDS

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BHUPESH PRADHAN (Querist)
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09 June 2011 Our Company has organized a Dealers Meeting in a Hotel. The Said Hotel has raised Bills (Both Accommodation & Food separately) to us. In the Food Bill, they had claimed VAT& Service Tax. The Rate of Service Tax is 6.18%. My Question is whether the Service tax Rate is Correct & whether we will deduct TDS. If yes, the Rate of TDS & under which section it well attract.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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09 June 2011 As per Notification No 34/2011 the 25th April 2011, in case of services provided by a restaurant etc of the kind mentioned by you, out of total amount 30% is treated as taxable service. The rate of service tax is 10% and as per my calculation it should be 3.09%. On food bill you need not to deduct TDS.

BHUPESH PRADHAN

BHUPESH PRADHAN (Querist)
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10 June 2011 Sir, I am herewith give the details of the said Bills for your referance.

Bill No-676 Qty Rate Amount
Dinner/ Lunch 80 500 40,000.00
Corkage 27 200 5,400.00
Real Juice 2 150 300.00
Beer 42 150 6,300.00
Soft Drinks 14 100 1,400.00
Soda 34 25 850.00
Water
54,250.00
VAT 5% 2,000.00
VAT 14% 357.00
Service Tax 6.18% 3,018.93
Service Tax 10.30% 556.20
Total 60,182.13

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