Tds and service tax on processing charges
This query is : Resolved
Akshay Choraria
(Querist)
25 November 2014
A client has raised a reimbursement bill of Rs 10000. It has further claimed Rs 1000 as processing charges on the same bill. Service Tax @ 12.36% is charged on the processing charges = Rs 124. Now, my query is :
1) Is TDS deductable on processing charges inclusive of Service Tax ?
2) If yes, then under which section the same should be deducted ?
3) The client has registered with the ST Dept. in the name of sister concern. Can i avail the credit under the sister concern of the client ?
1) Is TDS deductable on processing charges inclusive of Service Tax ?
2) If yes, then under which section the same should be deducted ?
3) The client has registered with the ST Dept. in the name of sister concern. Can i avail the credit under the sister concern of the client ?
CA Parul Saxena
(Expert)
25 November 2014
TDS to be deducted on Rs.1000 if other processing charges during the year has exceeded limit of Rs.75000....
Akshay Choraria
(Querist)
25 November 2014
Thanks for the reply !!
What if ?
1. IF there is no Service Tax registration no. and PAN of the client mentioned on the bill.And, the client has provided ST Registration No. of its sister concern. How is the credit of Service Tax to be treated? Can we avail the credit ?
2. If no PAN no is mentioned on the bill, are we liable to deduct TDS @ 20%?
What if ?
1. IF there is no Service Tax registration no. and PAN of the client mentioned on the bill.And, the client has provided ST Registration No. of its sister concern. How is the credit of Service Tax to be treated? Can we avail the credit ?
2. If no PAN no is mentioned on the bill, are we liable to deduct TDS @ 20%?
CA Parul Saxena
(Expert)
25 November 2014
yes you can avail the service tax.
yes 20% tds is to be deducted if PAN is not provided.
But before applying tds provisions ensure that bills of other processing charges exceed Rs.75000 only then you can deduct tds
yes 20% tds is to be deducted if PAN is not provided.
But before applying tds provisions ensure that bills of other processing charges exceed Rs.75000 only then you can deduct tds
Akshay Choraria
(Querist)
25 November 2014
More Queries:
1) If the processing charges does not exceed Rs 75000 are we still liable to deduct TDS as PAN is not mentioned ?
2) TDS 20% is to be deducted on the processing charges amount only or on the amount of reimbursement too as PAN is not provided ?
1) If the processing charges does not exceed Rs 75000 are we still liable to deduct TDS as PAN is not mentioned ?
2) TDS 20% is to be deducted on the processing charges amount only or on the amount of reimbursement too as PAN is not provided ?
CA Parul Saxena
(Expert)
25 November 2014
First check limit of Rs.75000 (for processing charges only)
If it is crossed then tds provisions aply.
2nd check PAN no. is provided or not.
If not deduct @ 20%
3rd tds is not deducted on reimbursement amount. It is to be deducted on processing charges only.
If it is crossed then tds provisions aply.
2nd check PAN no. is provided or not.
If not deduct @ 20%
3rd tds is not deducted on reimbursement amount. It is to be deducted on processing charges only.
Akshay Choraria
(Querist)
25 November 2014
Thanks a lot !! .
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