Tds on payment to lawyer u/s 194j
This query is : Resolved
31 January 2017
Say lawyer raised a bill to xyz co of Rs.30000 + 3000 ST(which is not charged separately in invoice and which is payable by xyz co on reverse charge )
Circular issued earlier for non deduction of TDS on service tax component comprised in the amount payable to a resident.
Since the bill amount is 30000 no TDS will be deducted u/s 194J.
But if we read the wordings of circular it is given that tds will only be not deducted only if the ST component comprised in the amount and in the present case ST is not comprised in the amount,hence tds shall be deducted on service tax amount payable on reverse charge u/s 194J .
Issue:-
1)Are we liable to deduct TDS on Rs.33,000 or Rs.30,000 or not necessary to deduct?
Circular issued earlier for non deduction of TDS on service tax component comprised in the amount payable to a resident.
Since the bill amount is 30000 no TDS will be deducted u/s 194J.
But if we read the wordings of circular it is given that tds will only be not deducted only if the ST component comprised in the amount and in the present case ST is not comprised in the amount,hence tds shall be deducted on service tax amount payable on reverse charge u/s 194J .
Issue:-
1)Are we liable to deduct TDS on Rs.33,000 or Rs.30,000 or not necessary to deduct?
31 January 2017
The limit u/s 194J is 30K. And u also need to deduct TDS exclusive of Service Tax. So u need to confirm once from the lawyer that the amount is inclusive of Service Tax or not. And if the amount is not inclusive of ST(means ST is not charged by the lawyer) then u need to deduct TDS on 33K @10%.
31 January 2017
Rs.30000 is purely his professional charges.
And how can he include/charge ST on his bill as the same shall be payable by xyz co on reverse charge.
Its arising new issue that whether ST payable on reverse charge should considered or not in determining threshold limit of 30000 as ST is payable on reverse charge..
And how can he include/charge ST on his bill as the same shall be payable by xyz co on reverse charge.
Its arising new issue that whether ST payable on reverse charge should considered or not in determining threshold limit of 30000 as ST is payable on reverse charge..
04 October 2021
For calculation of TDS the reverse charges are to be excluded.
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
- Depreciation of fixed assets- coop housing society in mumbai
- TDS on Consultancy- Non DTAA
- Reopen of assessment proceeding
- Rental income gst and it purpose
- Management System (IMS)
- Condonation . E-Verification of last year return .
- Eway bill generation from place other than registeted
- FTS Taxable under 115A
- EPF FULL & FINAL RULES IN 2026
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
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
