Tds under reverse charge

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This query is : Resolved

chandan kumar (Querist)

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)

10 August 2013 Yes, it is

TDS is deductable on value including service tax

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

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)

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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