Tds on commission and contractor

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Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2014 Dear Sir

We have received a bill of commission above 10lakh with service tax. i.e. 1000000+12.36% service tax. now i want to know the tds will be deduct on with service tax amount or before service tax ? same question abour contractors tds ? and from whitch date it was applicable

Thanks

Guest

Guest (Expert)

29 July 2014 it will be deducted before service tax dear..... no tds will be deducted on service tax part...

only on ten lacs

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

29 July 2014 TDS to be deducted on amount excluding service tax. The CBDT has issued Circular No. 1/2014 dated 13.01.2014 pointing out that the Rajasthan High Court has taken the view in CIT(TDS) vs. Rajashthan Urban Infrastructure that if as per the terms of the agreement between the payer and the payee, the amount of service-tax is to be paid separately and was not included in the fees for professional services or technical services, no TDS is required to be made on the service-tax component u/s 194J of the Act. Pursuant thereto, the CBDT has decided in exercise of powers u/s 119 that wherever the terms of the agreement/ contract between the payer and the payee, the service tax component comprised in the amount is indicated separately, tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without including such service tax component. Complete notification may be seen from below link--

https://law.incometaxindia.gov.in/DIT/Circulars.aspx

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