Tds on payment made to a service provider

This query is : Resolved

santosh Gupta (Querist)
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21 January 2014 if a service provider makes a bill in which service tax is separately shown. at the time of payment should the receipient deduct the TDS....if yes then on which amount....either inclusive of ST or exclusive of ST.... guide me please

Kalam

Kalam (Expert)
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21 January 2014 TDS will be calculated on the amount paid or credited. As we credit amount including ST, TDS would be calculated inclusive of ST.

@VaibhavJ

@VaibhavJ (Expert)
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21 January 2014 Hi

TdS not to be deducted on ST if it is mentioned separately as per latest circular issued

Thanks

@VaibhavJ

@VaibhavJ (Expert)
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21 January 2014 Pl refer circular 1 - 2014.

http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=19531

Kalam

Kalam (Expert)
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22 January 2014 Thanks for the update. Vaibhav is right.

Ganeshbabu K

Ganeshbabu K (Expert)
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22 January 2014 Yes..as per circular 1/2014 dated 13.01.2014
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Tds not applicable on servicetax which comprises payment to residents
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If servicetax amount shown seperately in invoice

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