query regarding tds deduction

TDS 1439 views 7 replies

Rohit

46 Points Joined March 2007

hi friends....i m doing articleship in tax based firm and right now i m doing etds return ..i have some queries regarding tds deduction and payment,,,,
plz reply me if u know the solution....

(1) Mr X has raised a bill of Rs 25000 + 10.2% Service Tax to Mr Y. Now Mr Y has to
deduct Tds on this amount. So on which amount Mr Y should deduct Tds ...whether on 25000 or on 25000 + 10.2% Tds i.e. on 27550.......

(2) Mr X has deducted TDS of Rs 2500 on June 2005 and it is paid to Government on 7th April 2006. now this amount should be paid on or before 7th of july 2005. and here Mr X has paid this on 7th April 2006. so whether this expenditure on which tds is deducted is allowed or disallowed,,,if it is disallowed then under which section it is disallowed............

Replies (7)

Yatin

73 Points Joined March 2007

As per the notification the tds is to be deducted on the gross value which should be inclusive of service tax if any,

so the tds value should be deducted on the value to be paid to the person.

Anshulgoyal

13 Points Joined March 2007

1 Tax should be deducted on total invoice value (including Service Tax)

Rohit

46 Points Joined March 2007

mr yatin singhal
if u know the notification regarding tds deducted on gross amont the please tell me on which date the notification was issued .....

Cagaurav

58 Points Joined March 2007

HELLO FRNDS

TDS SHOULD BE DEDUCTED ON GROSS AMOUNTOF INVOICE.WHICH WILL BE INCLUSIVE OF SERVICE TAX.

BUT IN THE CASE IF PART PAYMENT IS RECIVED IT SHOULD BE KEEP IN MIND THE PAYMENT WHICH IS RECEIVED AS PART PAYMENT IS ALSO INCLUSIVE OF SERVICE TAX AS PART PAYMENT IN THIS CASE TDS ALSO DEDUCTED ON THE AMOUNT WHICH IS RECD AS PART PAYMENT