is TDS 194j a double tax

Page no : 2

(Guest)

my point of view tds should be deducted on gross amount( including service tax + education cess ). view circular no.715 dt 08/08/1995 and also clarification via f.no.275/31/2007-it(b) dated 08/08/2007

CA. O.P. Agarwalla (C.A.) (2916 Points)
Replied 15 December 2007

With due respect to all the comments and CBDT Circulars, I would like to submit that- Section 194J says deduction of Tax (TDS) is to be made a person, who is reponsible for paying any sum by way of fees fo professional sevices on such sum. Now, my point is this that the section it self is clarifying that the phrase "such sum " on which the Tax is to be deucted is the amount of "sum paid as fees". (Better to distingusih between the language used in section 194C and 194J- Under section 194C tax is deductible on any sum paid for carrying out any work, where is under section 194J tax is deductible on any sum paid as fees for professionl services). Can we say that the service tax charged on professional service is fees for professional services? It is simply not. Professionl fees can not be set off as CENVAT, but service tax paid can be. Service tax may be part of the total receipt of the service provider, but for service receiver, service tax is not professional fees.

(Guest)

Absolutely, Mr.Agarwalla I fully endorse your views.Moreover the CBDT has no power to issue any circular in this regard.If it issues such a circular it would not be binding upon the assessee.The assessee will be bound only by the plain meaning of the Act,judicial pronouncement and amendments to the Act(if constitutional).Tax can not be deducted on the amount of Service Tax by any stretch of imagination.

(Guest)

in case of service tax on rent & telephone exp. brokerage, postage etc. the same assumption will be followed or not i.e tds will be deducted on a total bill.

(Guest)

9810423821

(Guest)

TDS should charged on the bill amount i.e. including service tax Or it should be ex-cluding of service Tax and Under what section it is covered. Please Quote...

(Guest)

TDS should charged on the bill amount i.e. including service tax Or it should be ex-cluding of service Tax and Under what section it is covered. Please Quote...

(Guest)

TDS should be deducted for gross amont. Since, here is no distinction of fees and service tax element in the hands of service receiver.all the amounts paid by the service receiver is to expenses for him.

O.D.SHARMA (DGM-F & A) (1734 Points)
Replied 18 February 2008

TDS have to be on gross billing.

(Guest)

PLEASE TELL ME TDS IS APPLICABLE ON NET AMT OR AFTER SERVICE TAX AMT

CA. Kirti S. Ganatra (Service) (1461 Points)
Replied 28 February 2008

There is one of circular of CBDT. that TDS to be deducted on gross amount that is 11224

CA. Kirti S. Ganatra (Service) (1461 Points)
Replied 28 February 2008

11224

RICKY (ACA AICWA CS (Executive Program)) (123 Points)
Replied 28 February 2008

Hi...... in Dec,2007 one judgement came for this issue only that will help you. According to that TDS has to be deduct on Total amount including service tax.

(Guest)

IT WOULD BE DEDUCTED ON GROSS AMOUNT. FOR THIS YOU NEED TO JUST INTERPRET THE SECTION 194J. I AM CENT PERCENT SURE ABOUT THIS THING. BCZ I HAVE CHECKED THIS ISSUE IN MY OWN COMPANY AND IN OTHER COMPANIES TO WHICH I AM PROVIDING TAX CONSULTING SERVICES