For tds deduct

DEAR ALL, 

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  

 

 

 

 

Replies (2)

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.

Dear Tanushkumar,

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

 

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