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query

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Dear all as you know, service receiver in case of Transportatin charge has the liability to pay service tax if not charges on bill on 25% after availing 75% abatement. But in case of TDS deduction any body suggest, TDS has to be deducted from the bill amount charged by the provider or from the ( bill amount charged by service + service tax we pay)
Replies (2)

In case the transporter provides PAN then NIL TDS

Else 20% of Bill amount excluding Service tax paid/borne by us

The bill amount charged by the service provider and the (value of taxable service + service tax) will be the same..

This is because, in case of abatement, we will charge service tax on the value of taxable service excluding the abatement portion.

For example, if the value of taxable service is Rs.10,000 and the abatement is 75%, the gross bill amount will be Rs.10,257.5 (10,000 + (10,000*75%*10.3%)...


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