09 December 2010
Sir i am doing an audit of a Construction Co. According to Form 16A the gross reciepts portion is the amount including Service Tax. The person making payment to Co. has deduct TDS on above mentioned amount i.e. the amount including Service Tax. According to me by doing so they have deduct TDS on Service Tax. Is it a right practice? If yes then how can he claim such TDS??
09 December 2010
yes. you are correct , TDS need to be deducted on gross amount including service tax in all cases except in case of Rent. ( On rent TDS need to be deducted exclusive of Service tax) In form 16A also need to be shown inclusive of service tax as gross amount
CAclubindia
