sumit (CA student) (203 Points)
27 September 2008Hi.....pls help me with this query.
If a CA charges professional fees from his client and also collects service tax. Then on wht amt. should the client making the payment deduct TDS whether he should deduct TDS only on the amt. shown as professional fees or on the whole amt.(including service tax).
Divine Kaur
(CA student)
(35 Points)
Replied 27 September 2008
TDS should be deducted on the total amount i.e. professional fee + service tax thereon. U/s 194 J TDS is deducted on the entire amount.
Rashmi
(CA)
(108 Points)
Replied 28 September 2008
TDS should be deducted on the total amount i.e. professional fee + service tax thereon. U/s 194 J TDS is deducted on the entire amount.
If there is any out of pocket expenses charged separately, then on that do not deduct TDS, but also note that out of pocket expenses charged along with the professional fees by the vendor will be totally chargeable to TDS on professional fees u/s 194J.
Hope helps you.
Regards
Rashmi Gandhi
CA Ravish Trivedi
(The Possibilities are Infinite...)
(772 Points)
Replied 28 September 2008
I agree with Rashmi answer.
sumit
(CA student)
(203 Points)
Replied 28 September 2008
hi....pls clarify whether a separate invoice should be raised for out of pocket expenses?? If i show it separately in the invoice for professional fees itself then will it attract TDS??
Divya sharma
(CHARTERED ACCOUNTANT)
(250 Points)
Replied 28 September 2008
YES TDS TO BE DEDUCTED ON TOTAL AMOUNT INCLUDING SERVICE TAX AS PER SEC 194J
IF OUT OF POCKET EXPENSES INCLUDED IN PROFEESIONAL CHARGES THAN TDS WILL BE DUDEUCTED ON THEM
BUT IF YOU THEM SEPARATELY TDS WILL BE DEUCTED ON PROFESSIONAL CHARGES ONLY.
Miss Komal Mantri
(Chartered Accountant )
(1974 Points)
Replied 28 September 2008
|
on the amount inclusive of service tax
Originally posted by :sumit nagpal |
||
| " | Hi.....pls help me with this query. If a CA charges professional fees from his client and also collects service tax. Then on wht amt. should the client making the payment deduct TDS whether he should deduct TDS only on the amt. shown as professional fees or on the whole amt.(including service tax). |
" |
CA. O.P. Agarwalla
(C.A.)
(2916 Points)
Replied 29 September 2008
Can we expect from our elected Representatives in ICAI that they will raise these issues before the CBDT for the greater benefit of CA Community.
Deduction of TDS on Service Taxes and On reimbursement of incurred expenses. I can not understand how these collections can be termed as a sum by way of fees for professional services.
Furthermore, in my opinion a proper representation should also be made before the Ministry of Finance for reconsideration of rate of TDS on our professional services. In my opinion 10% TDS is very high.
NITIN KOTAK
(SERVICE)
(1465 Points)
Replied 29 September 2008
AS PER NOTIFICATION NO-75/ NO NEED TO DEDUCT TDS ON SERVICE TAX AMOUNT AS PER CBDT NOTIFICATION & PROVISION FOR REAMBURSMENT THAT IF BILL NOT MADE SEPERATLY SO LIABLE FOR DEDUCTION ,FULLY AMOUNT OF BILL
| Originally posted by :sumit nagpal | ||
| " | Whether any collection agency who is in the business of recovery of financial chgs on behalf of Banks/NBFC can obtain TDS exemption certificate,so as to have lower rate of TDS deducted from its payments it recieves from its clients | " |
Subhankar Palit
(18 Points)
Replied 24 October 2008
| Originally posted by :sumit nagpal | ||
| " | Whether any collection agency who is in the business of recovery of financial chgs on behalf of Banks/NBFC can obtain TDS exemption certificate,so as to have lower rate of TDS deducted from its payments it recieves from its clients | " |
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
