DEAR FRIENDS,
I HAVE A DOUBT REGARDING TDS.
IF I RECEIVE A BILL AMOUNT OF 112000,IN WHICH RS100000 IS CONTRACT AMOUNT AND 12000 IS SERVICE TAX.
ON WHICH AMOUNT I HAVE TO DEDUCT TDS(1% OR 2%),WHETHER ON BILL 112000 OR ON 100000 WHICH IS CONTRACT AMOUNT. SERVICE TAX IS NOT INCOME OF SERVICE PROVIDER.
PLEASE REPLY AS SOON AS POSSIBLE.
THANKS IN ADVANCE
VENKATESH
TDS should be deducted on Rs. 100,000.00 Only as service tax is not a income, however you may deduct on total amount also.
It should be on total bill amount which in your case is Rs.1.2 lacs.
Regards
Dayananda
TDS should be deducted for the whole amount(112000) @ 1% or 2 % whichever is applicable.
i agree with varun..
The entire amount is liable for Tax Deduction.Since the value of the service includes the service tax.
TDS should be deducted on total amount. Only incase of rental we should deduct tds without service tax.
| Originally posted by : varun | ||
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TDS should be deducted for the whole amount(112000) @ 1% or 2 % whichever is applicable. |
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In this circular, board has clarified that tax deduction at source (TDS) under sections 194-I of Income Tax Act would be required to be made on the amount of rent paid/payable without including the service tax. [Circular no. 4 dated 28-4-2008]
Therefore in your case, TDS is to be deducted on the whoe of the amount i.e Rs.1,12,000
TDS should be deducted on the whole bill amount i.e.Rs.112,000/-
TDS will be deductible at the total amount inclusive of service tax eith @ 1%/2% depending on the status of payee.
it shud be deducted on total amount 112000
it should be on the entire amount including service tax i.e.112000/-
CAclubindia
