TDS & Service Tax
This query is : Resolved
28 December 2010
Respected Experts
If a service attracts service tax & as per Income Tax act also attracts TDS u/s 194c then as per rule TDS is also deductable on service tax amount with the service fees & also service tax is payable on receive basis only so if TDS is deducted on service tax then that portion is not recd by the assessee - now the question is - is that portion of service tax is also payable
thanks
Debashis Mandal
If a service attracts service tax & as per Income Tax act also attracts TDS u/s 194c then as per rule TDS is also deductable on service tax amount with the service fees & also service tax is payable on receive basis only so if TDS is deducted on service tax then that portion is not recd by the assessee - now the question is - is that portion of service tax is also payable
thanks
Debashis Mandal
28 December 2010
TDS deduction is deemed payment to party. So no need to pay further.
29 December 2010
TDS is need to be collected on Service Charge+Service Tax unless it is 194I
29 December 2010
Yes that portion of service tax is also payable.
Say Service amount Rs 1000+Service Tax Rs 103=1103 TDS deducted on 1103 @ 10% =Rs 110
Amount of service tax to be deposited will still be Rs 103 even when TDS has been deducted on same.
A per CBDT Cicular No. 4 dated 28-04-2008 TDS should be deducted u/s 194I on amount exclusive of service tax. But TDS in case of other section is to be deducted on amount inclusive of service tax.
Hope your query has been answered.
Say Service amount Rs 1000+Service Tax Rs 103=1103 TDS deducted on 1103 @ 10% =Rs 110
Amount of service tax to be deposited will still be Rs 103 even when TDS has been deducted on same.
A per CBDT Cicular No. 4 dated 28-04-2008 TDS should be deducted u/s 194I on amount exclusive of service tax. But TDS in case of other section is to be deducted on amount inclusive of service tax.
Hope your query has been answered.
30 December 2010
I had replied from the payers point of view. If you are the recipient then Service tax on TDS amount also payable.
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