Tds on service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 February 2014 In the case of Transport agency they charged service tax on bill whether tds deducted including service tax or not.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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10 February 2014 vide CBDT Circular No. 1/2014 dated 13-1-2014-

“TDS on service tax component comprised of payments made to residents”
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that wherever in terms of the agreement /contract between the payer and the payee, the service tax component comprised in the amount payable to a resident is indicated separately, tax shall be deducted at source on the amount paid/ payable without including such service tax component

Nikhil Kaushik

Nikhil Kaushik (Expert)
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10 February 2014 well if the payment is made to the transporter, tds is anyways not deductible due to 194c(6). where TDS is to be deducted, you can leave out the service tax part provided such amount is specifically mentioned in the invoice.

mahesh

mahesh (Expert)
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10 February 2014 TDS is to be deducted on only gross bill amount.if the service tax is shown seperatly.(exclusive)

TDS is to be deducted on service tax also.if the bill doesn't contain service tax amount.(inclusive of service tax)

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