Tds on service tax

This query is : Resolved

Share Report Follow Query Ask a Query

John Dhingra

John Dhingra (Querist)
Follow

17 June 2015 service provider bill Rs.100+12.36% service tax. what is the amount for TDs?

RahulMehta

RahulMehta (Expert)
Follow

17 June 2015 On Rs. 100 i.e. exclusive of ST.

Read CBDT Circular No. 1/2014 in F. No.275/59/2012-IT(B), Dated: January 13, 2014

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

18 June 2015 TDS to be deducted on amount excluding service tax for all sections.

The CBDT has issued Circular No. 1/2014 dated 13.01.2014 pointing out that the Rajasthan High Court has taken the view in CIT(TDS) vs. Rajashthan Urban Infrastructure that if as per the terms of the agreement between the payer and the payee, the amount of service-tax is to be paid separately and was not included in the fees for professional services or technical services, no TDS is required to be made on the service-tax component u/s 194J of the Act. Pursuant thereto, the CBDT has decided in exercise of powers u/s 119 that wherever the terms of the agreement/ contract between the payer and the payee, the service tax component comprised in the amount is indicated separately, tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without including such service tax component. Details of notification may be seen from below link--

https://www.eicbma.com/circulars/Cir-01-2014-130114.pdf

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now