We have received an invoice of Rs 30575 related to training charges. The bifurcation of amount is as follows:
Traning Charges: Rs 25000
Pumplet charges: Rs 3000
Service Tax on Rs 15000: Rs 2575
Total : 30575
Please confirm that on which amount TDS should be deducted.
Thanx in advance
Tax has to be deducted on Training Charges and Service Tax. Pamphlets dont come under the purview of TDS. SO Tax has to be deducted on 25000 + 2575 i.e. 27575/-
If it is an single invoice then you need to deduct on gross bill amount. To be on safer side, my suggestion is to deduct on Rs. 30575/-.
Agree with Amol Gopal Kabra
OM SAI SRI SAI JAI JAI SAI
normally if it is a singal bill,the tds should be deducted on the gross amount of the billi.e. Rs. 30575.00,, how ever in the given case if bill has been classified , no tds is tobe required on service tax amount , since it will be tax on tax.
According to provisions TDS has to be deducted on invoice amount......moreover u cannt seprate service tax from invoice amount.....except TDS in case of Rent u/s 194I......on which a notification has come.
TDS has to be deducted on whole amount of bill including paumplet charges as section 194J tells tds has to be done for any payments
TDS has to be deducted on invoice amount.
However if on the invoice if they have mentioned "VAT/CST" on some component of the invoice, TDS will be aplicable only on the remainning components of the bill.
NOTE : TDS is applicable on service tax charges in the invoice but not on VAT/CST charged in the invoice.
It's clear that if there is a composite bill for services and reimbursement of expenses, then TDS should be deducted on the amount of total bill.
TDS should be deducted only on tranning charges and services tax, not on others so it should be deducted only on 27575/-
TDS should be deducted on gross amount of Bill i.e Rs. 30575.( Including Service tax). TDS should be deducted on Service Tax Also (Except in case of Rent).
CAclubindia
