Tds in case of reverse charge
This query is : Resolved
22 January 2013
Dear expert,
I have a doubt that in case of service, which is having reverse charge of service tax, whether TDS has to be deducted on the value of Invoice or the value of service plus reverce charge of service also.
Thanks.
I have a doubt that in case of service, which is having reverse charge of service tax, whether TDS has to be deducted on the value of Invoice or the value of service plus reverce charge of service also.
Thanks.
22 January 2013
chck the following link
https://www.caclubindia.com/forum/tds-on-service-tax-under-reverse-charge-221055.asp#.UP4m4R3qn6Y
https://www.caclubindia.com/forum/tds-on-service-tax-under-reverse-charge-221055.asp#.UP4m4R3qn6Y
Message likes :
1 times
22 January 2013
Income tax to be deducted on the invoice amount since payment / credit to the service provider is the invoice amount only.
Message likes :
1 times
22 January 2013
Is the answer is same in case of partial reverse charge of service tax also?
27 July 2025
Good question!
**TDS under Income Tax vs Service Tax Reverse Charge:**
* For **TDS (Income Tax) purposes**, you deduct TDS **only on the invoice value excluding service tax** (whether under normal or reverse charge mechanism).
* The **service tax under reverse charge** is paid by the recipient directly to the government; **this amount is not part of the payment made to the service provider**.
* So, **TDS is calculated on the amount payable to the service provider (i.e., invoice value without service tax)**.
---
**Regarding Partial Reverse Charge:**
* Even if service tax is partially under reverse charge and partially under normal charge, the TDS is **deducted only on the value of services (invoice amount excluding service tax)** paid to the service provider.
---
**Summary:**
| Scenario | TDS Deductible Amount |
| ---------------------------------- | ------------------------------------- |
| Service Tax Normal Charge | Invoice Value (excluding service tax) |
| Service Tax Full Reverse Charge | Invoice Value (excluding service tax) |
| Service Tax Partial Reverse Charge | Invoice Value (excluding service tax) |
---
If you want, I can help you draft a summary note or circular references on this topic. Need that?
**TDS under Income Tax vs Service Tax Reverse Charge:**
* For **TDS (Income Tax) purposes**, you deduct TDS **only on the invoice value excluding service tax** (whether under normal or reverse charge mechanism).
* The **service tax under reverse charge** is paid by the recipient directly to the government; **this amount is not part of the payment made to the service provider**.
* So, **TDS is calculated on the amount payable to the service provider (i.e., invoice value without service tax)**.
---
**Regarding Partial Reverse Charge:**
* Even if service tax is partially under reverse charge and partially under normal charge, the TDS is **deducted only on the value of services (invoice amount excluding service tax)** paid to the service provider.
---
**Summary:**
| Scenario | TDS Deductible Amount |
| ---------------------------------- | ------------------------------------- |
| Service Tax Normal Charge | Invoice Value (excluding service tax) |
| Service Tax Full Reverse Charge | Invoice Value (excluding service tax) |
| Service Tax Partial Reverse Charge | Invoice Value (excluding service tax) |
---
If you want, I can help you draft a summary note or circular references on this topic. Need that?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR9- ITC
- REVENUE RECOGNITION AS PER IND AS 115
- Audit of F and O T/O
- GST 9- Table 8
- GST payable under RCM
- Applicablity on tds
- How to update Transaction data in broker samco account holding after transfer shares KARVY
- Unable to generate and save json file for updated return
- Tax audit & Switching from Presumptive taxation
- Inverted Tax Structure & Unutilized ITC on Services
- Mismatch of Sales Invoice in GSTR-1
- Query on Mismatch of Sales Invoice in GSTR-1
- Itr not filed and intimation for demand
- Import purchase entry
- Rule 54(1A) for Distributing ITC
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
- CA Articleship Extension Matter
- GST OFFICER WRONG NOTICE
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
Trending Online Classes
-
LIVE Course on GSTR-9 & GSTR-9C (Technical | Practical | Concept - Based)
Sachin Jain03 November 2025
CAclubindia
