Tds deducatable
This query is : Resolved
06 January 2015
dear sir,
my service provider has raised an service bill and show the service tax seperately now my question is whether i should deduct the tax on full amount or i should calculate tds on basic amount ie with out service tax
my service provider has raised an service bill and show the service tax seperately now my question is whether i should deduct the tax on full amount or i should calculate tds on basic amount ie with out service tax
CA AnKiT BoHrA (AB)
(Expert)
06 January 2015
basic amount without service tax part....
Tds is not deducted on service tax amount now
Tds is not deducted on service tax amount now
06 January 2015
you must deduct tds on amount excluding service tax amount as per circular no 1/2014.
06 January 2015
you must deduct tds on amount excluding service tax amount as per circular no 1/2014.
08 January 2015
TDS to be deducted on amount excluding Service Tax for all sections.
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
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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