TDS Quries

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This query is : Resolved

Rahul Suresh Jinde (Querist)

07 July 2008 Respected All,
One of my client little bit confused abt in which amount TDS have to deduct.
e.g.
Advertisement exps. Rs.10000/-Dr.
Service Tax 12.36% Rs. 1236/-Dr.
Party A/c Rs.11236/-Cr.
We are taking service tax rebate/claim. In above transaction in which amount we have to deduct TDS.
Awaiting your valuable guidence.

Mohit Gupta

Mohit Gupta (Expert)

07 July 2008
as a principal we can't deduct tax on tax so TDS deducted only before the amount of Service tax

Pranav

Pranav (Expert)

07 July 2008 TDS is required to be deducted on 11236/-.Recently the exemption to deduct tds without including ST is given only in case of 194I Rent & not in respect of any other section. Further if this is only a single transaction with this advertiser you must care that no tds is required to be deducted if amount is below or equal to 20000/-

Arun

Arun (Expert)

07 July 2008 TDS deduction inclusive of Service Tax will not result in double taxation. Because the TDs deducted will be adjusted against the Tax payable at finally. Since the recent amendment only for rent it will not applicable for ADs. Hence TDS has to be deducted on 11236/-

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