Circular no.01 /2014-income tax-tds on service tax component

TDS 52884 views 35 replies

Hi..

Following points/conditions should be noted as given in new circular 01/2014 dated 13.01.14 to get exemption on TDS on service Tax 

  1. The payement should be made to Resident so all payment made to non residents ,tds is to be deducted including service tax amount.

  2. Service Tax amount payable shall be indicated separately in term of Agreement/Contract between payer and payee.

If both the above condition are stasfied then no need to deduct TDS on service tax part.

See more at: https://www.simpletaxindia.net/2014/01/no-tds-on-service-tax-if-shown.html

 

Replies (35)

Hi..

Following points/conditions should be noted as given in new circular 01/2014 dated 13.01.14 to get exemption on TDS on service Tax 

  1. The payement should be made to Resident so all payment made to non residents ,tds is to be deducted including service tax amount.

  2. Service Tax amount payable shall be indicated separately in term of Agreement/Contract between payer and payee.

If both the above condition are stasfied then no need to deduct TDS on service tax part.

See more at: https://www.simpletaxindia.net/2014/01/no-tds-on-service-tax-if-shown.html

 

yes

 

Previous concept was not appropriate. Because Service Tax amount is not income of assesse and TDS should be deducted from income. 

yes

 

Thanks for the sharing.

can anyone clarify regarding....applicability of this circular on advanced payment made.

what is amount to be deducted in case of 100% advanced payment and bill is not raised.

and treatment in case partial advanced paid.


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