Mukesh Kumar (Accounts Manager) 09 July 2015
WE HAVE SUMBIT BILL RS 200000 AND CHARGE EXTRA SERVICE TAX @ 12.36 RS. 24720 . SO GROSS BILL AMT IS RS 224720. BUT OUR CLIENT HOLD @ 5% RETENTION RS 11236 (224720*5%) AND TDS DEDUCT ON BALANCE AMT RS.213484 (224720-11236), MY CLIENT FILE TDS RETURN AND FILL OUR TURN OVER RS 213484 AND TDS 1% RS. 2135 AND SAME TURN OVER SHOW IN OUR FORM 26 AS.. OUR CLIENT SAYS THAT WHEN NEXT YEAR THEY RELEASE OUR RETENTION AMT RS 11236 THAN WILL DEDUCT TDS 1% (RS. 112)
OUR DIRECT INCOME IS RS 200000 ,BUT IN FORM 26AS SHOW 213484 . WE HAVE ALSO FILE SERVICE TAX RETURN .
MY QUARY IS IN WHICH HEAD WE MAKE ENTRY OR HANDLE ABOVE SAID ALL TRANSCTION .
WE THEY RELEASE OUR RETETION THEY WILL DEDUCT TDS HOW ENTRY
THANKS IN ADVACNE
Poornima Madhava (ACMA) 09 July 2015
As per circular no.1/2014 dt 13/1/14, TDS is not applicable on ST. https://www.charteredclub.com/tds-on-service-tax/
So u can tel ur client not to deduct TDS on ST. On the remaining part, TDS as n when deducted by the client can be claimed by you while u file ITR.
Shyam C.Pujara (Student (C.A Final)) 09 July 2015
In my opinion your client should deduct TDS on 200000/- as he will credit your account by 200000/- and then will debit retention amount so as per TDS provisions it will deducted on payment or credited whichever is earlier so TDS should be deducted on 200000/-.
And as poornima said is correct TDS is not to be deducted on Service tax amount.
Hope this will solve your query