Tds applicability on service cum material bills
This query is : Resolved
20 January 2015
my query is, if an invoice have both material expense and service amount, what will be the implication of tds, is it under work contract tax, and need to deduct 1% or 2% TDS on whole amount?
Please guide me on correct method.
please give me correct answer as soon as possible.
Please guide me on correct method.
please give me correct answer as soon as possible.
20 January 2015
no tds on service tax amount as per circular no 1/2014.
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20 January 2015
you are welcome prem kumar...............
24 January 2015
The question over here is TDS on Service Amount. In case of works contract TDS required to be deducted u/s 194C.
Rate:
Individual/HUF @1%
Others @ 2%
No PAN 20%.
However, 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--
https://law.incometaxindia.gov.in/DIT/Circulars.aspx
Rate:
Individual/HUF @1%
Others @ 2%
No PAN 20%.
However, 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--
https://law.incometaxindia.gov.in/DIT/Circulars.aspx
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