Tds u/s 195j
This query is : Resolved
13 December 2012
If I have received an invoice for technical service for Rs.100000 on which Sevice Tax @ 12,3% is charged totaling to Rs.112300.as invoice amount . Now at the payment I have to deduct TDS U/S 194J of 10% on Rs.100000 or 10% Rs.112300.
I would be very thankful to you if you can kindly provide me a correct conclusive answer for this issue.
Thanks.
CA.L.Natarajan
I would be very thankful to you if you can kindly provide me a correct conclusive answer for this issue.
Thanks.
CA.L.Natarajan
13 December 2012
Dear Natarajan,
CBDT has clarified this issue in Circular no 275/73/2007IT dated 30.06.2008. Accordingly, TDS is required to be deducted on whole amount including Service Tax Portion.
These is only one exception to this rule which is TDS u/s 194I (TDS on Rent). Under 194I, TDS is to be deducted on Rent Portion only.
Hope this will suffice your purpose.
Regards
CA Hiren Thakkar
CBDT has clarified this issue in Circular no 275/73/2007IT dated 30.06.2008. Accordingly, TDS is required to be deducted on whole amount including Service Tax Portion.
These is only one exception to this rule which is TDS u/s 194I (TDS on Rent). Under 194I, TDS is to be deducted on Rent Portion only.
Hope this will suffice your purpose.
Regards
CA Hiren Thakkar
14 December 2012
Agreed with Mr. Thakkar.
On a careful study of Sec 194J you will observe that. The words used are " Any Sum paid...." Therefore Tax should be deducted on any sum paid to receiver.
SImilary in section 194I the words used are " Any Income by way of rent..." and service tax is not an Income thus in sec 194 I we do not include service tax for tds.
hope it is clear.
On a careful study of Sec 194J you will observe that. The words used are " Any Sum paid...." Therefore Tax should be deducted on any sum paid to receiver.
SImilary in section 194I the words used are " Any Income by way of rent..." and service tax is not an Income thus in sec 194 I we do not include service tax for tds.
hope it is clear.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Stamp Paper for partnership firm change new income tax 2025
- TDS on Purchase of Immovable Property by NRI from NRI
- Capital gain from sale of house property
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- SFT Cash Deposit in Current Account
- Annual return in Gst
- When TDS on GST applied
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
