For the exemption limit of 30000/75000 u/s 194C, whether the limit should be considered including service tax or excludng? Eg. Service value 28000/-, service tax(14%)-3920/-,total bill value-31920/-. whether tds should be deducted if its a single payment in that year?
Vide Circular No. 01/2014, dated 13.01.2014, CBDT has exempted deduction of TDS from service tax component if it's charged separately.
.
In the given instance, the amount payable excluding service tax is below the specified limit. Hence, TDS u/s 194C is not applicable.
The above circular exempts service tax component from tds deduction, whether same applies in deciding the exemption limit?
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
View Details
CAclubindia
