Tds % on contractual payment

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Harshad (Querist)
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22 February 2012 Hi,
I am holding company which give educational franchisee to others. All faculties are on my payroll and franchisee give me salary of faculty against bill which I raise. My query is collecting salary amount from franchisee and deposit on faculty bank account, how much % TDS to be deducted. It should be % or 10%.?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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22 February 2012 you need to calculated TDS on your faculty person under 192

Client will deduct tds on your invoice u/s.194J- 10%

Harshad

Harshad (Querist)
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23 February 2012 Thanks for Reply Sir, Currently We are raising bill to franchisee is salary which is 100 Rs + Service Tax 10.3% which is Rs110.3. Now they are deducting 10 % on full amount. In this case they need to pay deducted TDS to Govt and service tax to us which we will deposit to Govt. Which cause additional amount is going to Govt by both parties. Can you suggest what we can do in this case to avoid this?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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24 February 2012 TDS & Service tax both are different taxes.

TDS deduction is not loss, it is your tax payment to government only,it will reduce your tax burden, in case you are not coming in to tax net, the same will be refunded

Service tax is the actual payment to Govt . which cannot avoid by the service provider,. only it can be taken input set of by against the other services by the service receiver

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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