Tds on service tax u/s 194j for financial year 2013-14

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This query is : Resolved

ramanamma (Querist)

05 July 2014 Hi friends

is it TDS required to deduct on fee + service tax (or) on only fee amount paid u/s 194j.

because provision required to be made for FY 2013-14 (Audit fee) purpose.

which amount is required to be considered

Rupesh Jain

Rupesh Jain (Expert)

05 July 2014 you can deduct the tds w/o service tax .

see circular 1/2014.

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Ganeshbabu K

Ganeshbabu K (Expert)

05 July 2014 provision have to to be passed only for professional fee it should not include service tax
.
.
Suppose audit fee of 1lakh
.
.
Entry..on 31.03.2014

Dr.Audit fee 1lakh
Cr.TDS 194J 10000
Cr.Audit fee payable 90000
.
.
.
on receipt of invoice

Dr.Audit fee payable
Dr.Service tax input
Cr.Auditor A/c
.
.
cIRCULAR 1/2014---No TDS on service tax

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

05 July 2014 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.

Complete notification may be seen from below link--

https://law.incometaxindia.gov.in/DIT/Circulars.aspx

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ramanamma

ramanamma (Querist)

07 July 2014 Ganeshbabu sir

if in case audit fee Rs. 50000/- then
how to pass entry in tally and is it required to made service tax entry separately for the year end ,
is it service tax input credit is available. if it is available then under which service tax can be set off.

Ganeshbabu K

Ganeshbabu K (Expert)

08 July 2014 Service tax entry cannot be taken
.
.

Dr.Audit fee 50000
Cr.TDS Payable 194J 5000
Cr.Audit fee payable
(Being audit fee provision)
.
.
DrAudit fee Payable A/c 45000
Dr.Service tax input(If eligible)
Cr.Auditor A/c
.
(Being audit fee payable to auditor)

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