Tds deduction

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CA Mansi Rathee (Querist)

30 July 2012 HI all,

May i request you to please guide me on the following :

ABC co. has taken services from lawyer needs to pay the service tax under reverse charge. Is TDS deductible on amount Including Service tax or only on the bill amount( i.e excluding service tax.

Thanks.

aadish

aadish (Expert)

30 July 2012 Tds amount shall be deducted on amount inclusive of S. tax, if payment is covered under section 194C and 194 J, so in your case TDS should be deducted on amount inclusive of Service TAx.

Hope ur Query is resolved.

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CA Mansi Rathee

CA Mansi Rathee (Querist)

31 July 2012 Hi aadish,

What if the Service Provider does not charge Service tax in his bill.

And i have to deposit the service due to applicability of Reverse charge.

aadish

aadish (Expert)

31 July 2012 TDS as u know, what does it mean, TDS on income, so where service receiver has to pay tax due to reverse charge mechanism, TDS is to be deducted on amount of bill, i.e exclusive of service tax.

Hi mansi ....Hope your Query is resolved.

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