TDS deduction

This query is : Resolved

umesh (Querist)
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01 June 2008 Dear sir,
1.i want to know when we have to deduct the
TDS on receipt of Bill or when we are making the payment to contractor. or which will come first.

2. TDS has to deduct on total amount of bill (with service tax) or without service tax.

Jitender

Jitender (Expert)
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01 June 2008 1 tds to be deducted on credit to the account or payment whichever is earlier.

2 tds should be deducted inclusive of service tax.

Shekar

Shekar (Expert)
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02 June 2008 Hi umesh..

As per CIRCULAR NO. 4/2008, DATED 28-4-2008, TDS on Rent to be deducted on Amount excluding Service tax...for all other payment u have to deduct TDS on total amount of bill(with service tax)..

For more details vsist
http://law.incometaxindia.gov.in/TaxmannDit/DisplayPage/dpage1.aspx?md=1