Tds on commission
This query is : Resolved
pujan shah
(Querist)
18 August 2011
should TDS be deducted on gross amount of commission or on the amount of commission including service tax in case of a C & F Agent
CA Navin Jain
(Expert)
18 August 2011
TDS would be deducted on the amount of commission including service tax
18 August 2011
Agree with Navin Ji....
As per Circular No.4/2008 dated 28.4.2008, it was clarified that TDS on rental payments would be required to be made only on the basic rental amount without including service tax. In other words, TDS should not be made on the service tax portion of the rent. However, this analogy is not applicable to TDS under other sections.
In short--
For 194I - Deduct TDS on amount excluding service tax.
For other section - Deduct TDS on amount including service tax.
As per Circular No.4/2008 dated 28.4.2008, it was clarified that TDS on rental payments would be required to be made only on the basic rental amount without including service tax. In other words, TDS should not be made on the service tax portion of the rent. However, this analogy is not applicable to TDS under other sections.
In short--
For 194I - Deduct TDS on amount excluding service tax.
For other section - Deduct TDS on amount including service tax.
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