When to deduct tds

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This query is : Resolved

Bhubaneswar (Querist)

24 July 2014 Dear Sir

Help me in following two points.

1. When to deduct TDS. a)At the time of booking of invoice or b) At the time of making payment.

2. Whether TDS is deducted on the value including of service tax or excluding of service tax.

Thanks & Regards

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

24 July 2014 1. whichever is earlier
2.as per notification no 1/2014 no tds deductible on servcie tax portion

Bhubaneswar

Bhubaneswar (Querist)

24 July 2014 Thanks sir, can you pls confirm me from where i will get the copy of notification 1/2014

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

24 July 2014 https://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=19531

Message likes : 1 times

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

24 July 2014 TDS to be deducted on amount excluding service tax. The CBDT has issued Circular No. 1/2014 dated 13.01.2014 pointing out that the Rajasthan High Court has taken the view in CIT(TDS) vs. Rajashthan Urban Infrastructure that if as per the terms of the agreement between the payer and the payee, the amount of service-tax is to be paid separately and was not included in the fees for professional services or technical services, no TDS is required to be made on the service-tax component u/s 194J of the Act. Pursuant thereto, the CBDT has decided in exercise of powers u/s 119 that wherever the terms of the agreement/ contract between the payer and the payee, the service tax component comprised in the amount is indicated separately, tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without including such service tax component. Complete notification may be seen from below link--

https://law.incometaxindia.gov.in/DIT/Circulars.aspx

Message likes : 1 times

Bhubaneswar

Bhubaneswar (Querist)

24 July 2014 Thanks a lot for helping me

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

24 July 2014 you are welcome friend...........................

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