Overseas service Tax Amount - Payable

We are availing services from overseas Agency. At present we are doing calculation as follows

Rs. 1000/- - Transferred to Overseas Agent

Rs. 100/- - TDS

Rs. 112/- - Service Tax amount,

Now issue is whether we have to include TDS amount at the time of calculation service tax or Not

Your immediate advice is requested as we have to close our books by 14:00 hrs today.

Regards

Nagesh M R

 

Replies (4)

If you pay Rs. 1,000/- to overseas agent, it is assumed that you pay after deduct the TDS and as given above TDS is Rs. 100.

It means you have to calculate service tax on Rs. 1,100/-

The TDS has to be included. If the service is for export of goods for which you are required to pay the commission , you need not pay on reverse charge basis upto 10% wef 7.12.2008. Earlier the rate was 2%.

Warm Regards

Madhukar

 

 

Dear Madhukar Sir,

Sincere, Thanks for your advice, we are availing architect service from overseas professional.

So, commission will not araise in this case

Regards,

Nagesh M R

 

 

 

if you are getting a invoice for Rs. 1000 from the vendor how can we add the TDS amount to the base amount for calculating service tax 

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