A bill amount of Rs. 100 plus service tax on them @ 10.3% is raised to the client. the client makes the payment of Rs. 98 after deducting TDS of Rs. 2 and the balance amount is payable. So, on how much amount the service tax should be deposited .
CA Bhuvan (CA ) (83 Points)
06 February 2010A bill amount of Rs. 100 plus service tax on them @ 10.3% is raised to the client. the client makes the payment of Rs. 98 after deducting TDS of Rs. 2 and the balance amount is payable. So, on how much amount the service tax should be deposited .
yogeswar sharma
(article student)
(40 Points)
Replied 06 February 2010
| Originally posted by : Bhuvan | ||
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A bill amount of Rs. 100 plus service tax on them @ 10.3% is raised to the client. the client makes the payment of Rs. 98 after deducting TDS of Rs. 2 and the balance amount is payable. So, on how much amount the service tax should be deposited . |
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the cleint has to apply the tds rate on the whole amount including service tax and the deduct the tds and pay balance amount.
CA. Abhishek K. Pandey
(Manager (Advance))
(901 Points)
Replied 06 February 2010
CA Bhuvan
(CA )
(83 Points)
Replied 09 February 2010
my question is on how much amount the client should deposit the service tax if has received Rs. 98 after deduction of TDS in a month.
Vikas
(CA)
(1135 Points)
Replied 09 February 2010
If the service provider receives the lesser amount then he will have to reverse calculate upon the amount recd.
i.e.,service tax payable = 98/1.103*0.103=9.15
Service Tax is payable on the receipt basis.
Vikas
(CA)
(1135 Points)
Replied 09 February 2010
As far as the TDS deduction is concerned, I agree with the method suggested by Abhishek.
CAclubindia
