TDS on reverse charge
This query is : Resolved
Mridulla Mittal
(Querist)
02 November 2007
In case of import of services where the responsibility of payment of service tax to the revenue department is of the service receiver whether TDS be deducted on amount after adding service tax amount to the bill amount or the amount billed ? In this case service provider has not included the service tax amount in the bill and CBDT circular talks about "Gross amount of bill".
Ajay Gumbar
(Expert)
02 November 2007
Dear Mr. Mittal,
The TDS is to be deducted on Gross amount billed.
Since in case of import (or any Reverse Charge Case mentioned under Rule 2(1)(d) of Service Tax Rules 2002), service tax is not charged in the invoice / bill.
Therefore TDS is deducted on Gross amount billed which does not include ST, EC or SHE Cess.
Regards,
Ajay Gumbar.
The TDS is to be deducted on Gross amount billed.
Since in case of import (or any Reverse Charge Case mentioned under Rule 2(1)(d) of Service Tax Rules 2002), service tax is not charged in the invoice / bill.
Therefore TDS is deducted on Gross amount billed which does not include ST, EC or SHE Cess.
Regards,
Ajay Gumbar.
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 Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- MSME disclosure and disallowance
- EPF ECR NEW RULES Sep 17th 2026
- Issuing of delivery challan by seller of goods
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Transfer of Physical Stock Between Two Proprietorship Concerns
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- 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
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
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
