Tds & service tax
This query is : Resolved
gauri bajaj
(Querist)
31 May 2013
sir,
i want to know whether in case of professinal fees s.194J tds is deducted on the gooss amount inclusive of service tax or not?
i want to know whether in case of professinal fees s.194J tds is deducted on the gooss amount inclusive of service tax or not?
31 May 2013
TDS to be deducted on Gross Bill amount including service Tax.
As per Circular No.4/2008 dated 28.4.2008, it was clarified that TDS on rental payments would be required to be made only on the basic rental amount without including service tax. In other words, TDS should not be made on the service tax portion of the rent. However, this analogy is not applicable to TDS under other sections.
In short--
For 194I - Deduct TDS on amount excluding service tax.
For other section - Deduct TDS on amount including service tax.
As per Circular No.4/2008 dated 28.4.2008, it was clarified that TDS on rental payments would be required to be made only on the basic rental amount without including service tax. In other words, TDS should not be made on the service tax portion of the rent. However, this analogy is not applicable to TDS under other sections.
In short--
For 194I - Deduct TDS on amount excluding service tax.
For other section - Deduct TDS on amount including service tax.
Ganeshbabu K
(Expert)
31 May 2013
Yes, you can go as per sanjay sir suggestion.
194I-deduct TDS on amount excluding servicetax
for other section: deduct TDS on amount including servicetax
Plese refer below file detailed explanation which gives some clarity on this
https://www.caclubindia.com/share_files/tds-on-service-tax-on-all-payments-except-rent-56695.asp
194I-deduct TDS on amount excluding servicetax
for other section: deduct TDS on amount including servicetax
Plese refer below file detailed explanation which gives some clarity on this
https://www.caclubindia.com/share_files/tds-on-service-tax-on-all-payments-except-rent-56695.asp
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