Sir,
Should we deduct TDS excluding Service Tax only or other tax (like: VAT, CST, CESS etc, while making payment to Vendor .
Thankyou
Yogendra Chettri.
Menu
Deduction of tds
Replies (10)
You Have To Deduct Excluding Service Tax Amount And Not Other Tax Like VAT Etc.
Tds will be applicable on basic amount( excludes vat n all other taxes).
As law intention to deduct tds on income part only not on any taxes.
Tds will be applicable on basic amount( excludes vat n all other taxes).
As law intention to deduct tds on income part only not on any taxes.
Tds will be applicable on basic amount( excludes vat n all other taxes).
As law intention to deduct tds on income part only not on any taxes.
No tax on tax simple basic concept.
https://www.chdcaprofessionals.com/2014/01/circular1incometaxclarificationtdsonservicetaxcomponent.H T M L
TDS is not applicable for sale, hence to the extent Excise duty and VAT are charged, TDS Not applicable, hence TDS Is applicable only on value of taxable service. (kindly enough the same with experts)
Thankyou all for clearing my doubts..
TDS should be deduct including VAT amount but not service Tax
This is as per new circular 01/2014 dated 13.01.14 issued by Central Board of Direct Taxes, India to get exemption on TDS on service Tax.
NO TDS ON SERVICE TAX IF SHOWN SEPARATELY UNDER ALL SECTION ON PAYMENT TO RESIDENT .
Hence TDS is to be calculated on the Basic Amount + VAT (if applicable - In case of Work Contract Tax) and not on the Gross Amount.
OR TDS is to be calculated only on the Basic Amount (if VAT is not applicable).
Service Tax component is to be excluded from TDS calculation.
Recent Topic
- Business income source for husband and wife
- Set off of LTCL against STCG under section 536(2n)
- Audit Workflow tool
- Is CA through direct entry easy for a commerce stu
- Dividend and withholding tax - DTAA- RSU
- NRI Query: Capital Gains Tax Exemption under Secti
- Royalty payment to UK
- Calculate ITR2 tax with equity and non equity prof
- LTCG on residential property sale - Rebate?
- TDS MISMATCH AND AIS
Related Topics
CAclubindia
