if service tax component shown in the bill separatelt then tds will be deducted on fees only(excluding s.tax).ex-fees rs 5000 service tax @ 12.36% Rs 618 total amt payable-Rs5618 then on what amt tds would be deducted??????????plz reply
if service tax component shown in the bill separatelt then tds will be deducted on fees only(excluding s.tax).ex-fees rs 5000 service tax @ 12.36% Rs 618 total amt payable-Rs5618 then on what amt tds would be deducted??????????plz reply
Dear Sarita
TDS is to be deducted on amount excluding service tax....
IN your example TDS is to be deducted on 5000/-
dear saloni thanks but Rs5618 (inclusive of all taxes) is mention on contract and bill shows separately like fees-Rs.5000 s.tax-618 and total value-5618.now what to do?????
Hi Sarita,
To my understanding if the Service Tax Componenet is mentioned seperately on the invoice then TDS should be deducted on the Rs. 5000/- otherwise on full amount.
OR
U Can folllow "Thumb rule"
"IN CASE OF CONFUSION DEDUCT TDS ON TOTAL AMOUNT"
TDS is to be deducted on amount Excluding Service Tax .
Refer latest circular as below issued by CBEC
Circular No.01/2014
also CIT(TDS) Jaipur vs Rajasthan Urban Infrastructure (Income-tax Appeal No.235, 222, 238 and 239/2011),
Naveen Fintech Pvt Ltd
Kolkata
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