Tds under reverse charge

This query is : Resolved

chandan kumar (Querist)
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10 August 2013 Whether TDS is deducted on the bill inclusive of service tax payable by the recepient of service charge under reverse charge.

Ganeshbabu K

Ganeshbabu K (Expert)
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10 August 2013 Yes, it is

TDS is deductable on value including service tax

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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10 August 2013 No TDS is deducted on value excuding service tax in case of RCM.

Say lawyers bill Rs 10000/-
TDS Rs 1000/- (10% of Rs 10000/-)
We pay Rs 9000/- to lawyer.

ST paid under RCM @12.36% of Rs 10000/-

i.e., Rs 1236/-

Ganeshbabu K

Ganeshbabu K (Expert)
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11 August 2013 Yes,,it is exactly as suggested by Sanjay Gupta Ji

TDS is on amount payable to payee

Suppose in case of manpower supply

BILL VALUE 100
STAX (25%) 3.09

So you need to pay 103.09 to manpower supplier

And TDS 2% to be deducted on 103.09

No TDS Applicable on your part of service tax

Thanks & regards
Ganesh babu k

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