Tds & service tax


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Querist : Anonymous

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Querist : Anonymous (Querist)
09 February 2013 If any person provides the private service for maintaining the books of A/cs in Society and he gets the payment/Amount of
< Rs.190000/- for the same?
Can society show the payment made as remuneration?
Is it mandatory to TDS & Service tax?

09 February 2013 applicability of Service tax shall depend on the individual's overall revenue in the year.

As long as the same is under Rs 10,00,000, service tax shall not apply.

For TDS, it depends on how the payment is made to the person. If the same is made under 194J, TDS at 10% is compulsory. However, if the payment is shown as salary, no TDS shall apply as long as the total payment in the year is less than the exempted limit.

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Querist : Anonymous

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09 February 2013 but he is not employee of the society. If it is shown as remuneration then TDS is not applicable, but is it acceptable by law?

09 February 2013 whether a person is an employee or not depends on a few factors:

1. Does the person has principal to principal relationship with the society?

2. Documents be arranged to establish that the person is an employee of the society?

3. As far as income tax department, the primary proof shall be the Form 16/ Form 16A.

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Querist : Anonymous

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Querist : Anonymous (Querist)
10 February 2013 Can society show the remuneration instead of professional fees paid and issue the form no 16A?.......

11 February 2013 No. It can not...either you pay remuneration (salary) and issue form 16 or pay professional fees and issue Form 16A. You can't mix the two!


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