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Relating to tds
Mr. X&co is a charted accountants firm and providing services to Mr. Y, a company and charges 10000rs as professional fee and service tax there on is 1450rs so total 11450.
My question is while paying to Mr. X& co, Mr. Y is to deduct tds u/s 194j,
On what amount does tds is to be deducted? On 10000rs or on 11450rs.plz clarify
Replies (18)
It is only on Basic amount, you need not deduct on service tax portion.
TDS is DEDUCTED on only Rs10000
TDS should be deducted only on 10000 rs i.e 1000 rs total payment should be 9000+1450.
Tds deducted on rs 10000.
Agree. It's the basic income on which TDS is deducted. It can't include any service tax.
No. Tds is only deduct on income. therefore TDS is to be deducted on the amount exclusive of service tax if the service tax amount is shown seprately.However if Service tax amount is not shown seprately then in such TDS is deduct on TOTAL amount.
under sec 194j
TDS will be deducted only on Gross Amount thats Rs. 10,000 and not on Service tax Amount.
Tds should be deducted only on gross amount I,e is rs.10000
Tds should be deducted only on gross amount I,e is rs.10000
Service tax portion has to be excluded from amount while deducting TDS at the time of payment. So TDS is to be deducted on Rs 10,000 only .
Tds deducted only Gross amount .....also note if payment made to person for professional services during the year exceed Rs 30000 than tds should be deducted such payment...in your case tds not deducted
Is it is applicable only 194J or other sections?
Is it is applicable only 194J or other sections?
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