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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is service tax to be paid on TDS deducted amount
Replies (5)
| 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.
No. The client has to deduct T.D.S. only on bill amount. So it would be like bill amount (Rs. 100.00) + Service Tax (Rs. 10.30) = Total bill amount (Rs. 110.30)
Total amount to be paid = Total bill amount (Rs. 110.30)-T.D.S.(Rs. 2.00)=Rs. 108.30
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.
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.
As far as the TDS deduction is concerned, I agree with the method suggested by Abhishek.
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