Tds of service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 August 2012 Dear experts,
One of my client is a govt. department and they are deducting Income Tax tds and VAT tds on payment being made to civil contractors.
Whether they are also liable to deduct service tax tds, if yes then under which section.
Please advise me.

Amol S Joglekar

Amol S Joglekar (Expert)
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10 August 2012 The govt dept needs to check the contents of reverse charge. If it applicable then the Govt dept needs to deduct / pay the reverse charge.

Querist : Anonymous

Querist : Anonymous (Querist)

10 August 2012 what is reverse charge.

Amol S Joglekar

Amol S Joglekar (Expert)
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11 August 2012 under this Service Tax dept has a right to recover service tax from service receiver (if not paid by the service provider) It is applicable to all body corporates.

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2012 but my client is a govt. department.

Amol S Joglekar

Amol S Joglekar (Expert)
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11 August 2012 you need to go through the definition of body corporate under the act in order to decide whether govt falls under body corporate or not.

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2012 What's your view in respect of govt. department?

Amol S Joglekar

Amol S Joglekar (Expert)
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14 August 2012 Govt dept are of various types. Govt undertaking, govt arm, govt co are the various names that are seen in vogue. Funded projects like NRHM etc. are yet another head ache issues. While many of them fall under the definition of Body Corporate, the direct depts per se ... say dept of co law affairs, finance ministry dept are not body corporate. But ONGC, Nationalised banks, NRHM are body corporates.

Querist : Anonymous

Querist : Anonymous (Querist)

14 August 2012 my client is PWD of state govt.

Amol S Joglekar

Amol S Joglekar (Expert)
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14 August 2012 Government and local authorities are also liable to pay tax?
Yes. However, most of the services provided by the Government or local
authorities are in the negative list.

Querist : Anonymous

Querist : Anonymous (Querist)

14 August 2012 So my client should deduct service tax tds like income tax before making payment.

Amol S Joglekar

Amol S Joglekar (Expert)
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15 August 2012 Yes if service tax is appplicable.

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