RESPECTED ALL,
ON WHICH AMOUNT T.D.S. SHOULD BE DEDUCTED WHEN PARTIAL REVERSE CHARGE MECHANISM IS APPLICABLE AND 25% SERVICE TAX IS PAID BY SERVICE PROVIDER.WHETHER T.D.S. SHOULD BE DEDUCTED ON INCLUSIVE AMOUNT OF SERVICE TAX OR EXCLUSIVE AMOUNT?
RESPECTED ALL,
ON WHICH AMOUNT T.D.S. SHOULD BE DEDUCTED WHEN PARTIAL REVERSE CHARGE MECHANISM IS APPLICABLE AND 25% SERVICE TAX IS PAID BY SERVICE PROVIDER.WHETHER T.D.S. SHOULD BE DEDUCTED ON INCLUSIVE AMOUNT OF SERVICE TAX OR EXCLUSIVE AMOUNT?
The service receiver will deduct tax at source on amount including 25% service tax paid to provider.
Thanks,
TDS need to be deducted from the total value of Invoice.
Say Manpower Service Value = 100.00
Service Tax on 25% of Value = 3.09
Total Invoice Value = 103.09
TDS should be deducted on Rs. 103.09 @ 1% or 2% u/s 194C as the case may be, by the service receipient company from the Invoice of Individual/Partnership Firm/HUF/AOP.
Service Tax on 75% Value = Rs. 9.27 should be directly paid to the credit of government vide GAR-7 Challan by the company.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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