Tds on fees of professional or technical services
This query is : Resolved
22 November 2013
Is TDS on fees of professional and technical services required if as per terms of agreement service tax is paid seprately and was not included in fees of professional/technical services.
23 November 2013
Dear Manish,
TDS will be paid on amount inclusive of service tax. Remember the client has raise an invoice and if he is liable to pay service tax, his invoice shall include the service tax payable. Just by way of a clause in agreement or by paying service tax separately, operation of Income tax provisions cannot be negated.
All these are fancy models that we provide to clients which do no good to client but only cause pain to him/her in long term. Stick to basics and help in improving compliance instead of planning for long term litigation for clients.
TDS will be paid on amount inclusive of service tax. Remember the client has raise an invoice and if he is liable to pay service tax, his invoice shall include the service tax payable. Just by way of a clause in agreement or by paying service tax separately, operation of Income tax provisions cannot be negated.
All these are fancy models that we provide to clients which do no good to client but only cause pain to him/her in long term. Stick to basics and help in improving compliance instead of planning for long term litigation for clients.
23 November 2013
Dear Nikhil,
If as per terms of agreement service tax billing will be done seprately like section 194I. And if i refer the case of CIT v/s Rajasthan urban infrastructure development project (2013)and as per terms of agreement service tax is not part of fees of professional or technical services and Section 194J indicates "any sum paid" for professional or technical services. So service tax is not part of the same.
If as per terms of agreement service tax billing will be done seprately like section 194I. And if i refer the case of CIT v/s Rajasthan urban infrastructure development project (2013)and as per terms of agreement service tax is not part of fees of professional or technical services and Section 194J indicates "any sum paid" for professional or technical services. So service tax is not part of the same.
23 November 2013
Dear Nikhil,
If as per terms of agreement service tax billing will be done seprately like section 194I. And if i refer the case of CIT v/s Rajasthan urban infrastructure development project (2013) and as per terms of agreement service tax is not part of fees of professional or technical services and Section 194J indicates " any sum paid" for professional or technical services. So service tax is not part of the same.
If as per terms of agreement service tax billing will be done seprately like section 194I. And if i refer the case of CIT v/s Rajasthan urban infrastructure development project (2013) and as per terms of agreement service tax is not part of fees of professional or technical services and Section 194J indicates " any sum paid" for professional or technical services. So service tax is not part of the same.
23 November 2013
Dear Manish:
1. exclusion of service tax from ambit of 194-I is specially provided for.
2. I have read the Rajasthan High Court judgment earlier too and I agree to its inference.
However, I would wait till the matter achieves finality with Supreme Court.
However, I agree that you may use this judgment specially where the matter is within the jurisdiction of Rajasthan high Court. To add to it, you may, if you wish, can also use this judgment for other jurisdictions also by referring to All India Lakshmi Commercial Bank Officers' Union v. Union of India [1984] 150 ITR 1 (Delhi)
1. exclusion of service tax from ambit of 194-I is specially provided for.
2. I have read the Rajasthan High Court judgment earlier too and I agree to its inference.
However, I would wait till the matter achieves finality with Supreme Court.
However, I agree that you may use this judgment specially where the matter is within the jurisdiction of Rajasthan high Court. To add to it, you may, if you wish, can also use this judgment for other jurisdictions also by referring to All India Lakshmi Commercial Bank Officers' Union v. Union of India [1984] 150 ITR 1 (Delhi)
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
- STCG....................................................
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- TAN for Partnership
- Free lancer income
- Is it compulsory to File 10E if Income including Pension Arrears is below 12 Lakh for the F Y 25 26
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- STCG FOR GOLD ETFs
- Suggestions required for income tax filing-software (FY 2025-26)
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
