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SERVICE TAX AND TDS

Adv. S Sharma (Lawyer) (574 Points)

18 June 2008

Hi all,

Query:- service tax on what????/

Total Work done - 4 lakh

Payment to contractor for work - 2 lakh

Payment to contractor for services - 180000

total payment - 3,80,000 without witholding tax.

Now TDS on which portion either on 2 lakh or on 380000 (2 lakh + 180000) or on 402280 (2 lakh + 180000 * 12.36% = 22080)

Thanks nd Regds

Sachin

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14 Replies

Shekar (CA & LCS ) (1109 Points)
Replied 18 June 2008

Hi..

If the contractor has given bill inclusive of service tax..Then TDS has to be deducted on Sum inclusive of Service tax (i.e on Rs.402280)

Hema Desai (PRACTICING CA AND ENTERPRENEUR) (92 Points)
Replied 19 June 2008

In my opinion TDS to be deducted only on net amount paid for the services only i.e. excluding amount paid for material purchased and service Tax. i.e 180000/-

Service tax is excluded based on no TDS on Service tax as per circulare dated 08042008. Although that circular is applicable for Service TAx on Rent in my opinion it would apply to all kind of services.

Hema Desai

CA S Sundararajan (CAO) (536 Points)
Replied 19 June 2008

I guess Mr.Sheker is correct,since there is a notification by Deptt. regarding Tax has to be deducted on Net amount. ie (Taxable value+ ST)

Rohit (Self Employed Professional) (24 Points)
Replied 19 June 2008

Sec 194C states that TDS has to be deducted on gross payments made to contractor, therefore, TDS should be deducted on Gross payment inclusive of Service Tax.

Sec 194-I states TDS on income by way of rent and as per circular also TDS needs to be deducted on rental income only. This circular is specifically for rental income. Making any interpretation based on circular is useless, so i would suggest u to deduct TDS on gross payments to contractors u/s 194C.

Rgds, Rohit

Adv. S Sharma (Lawyer) (574 Points)
Replied 25 June 2008

well, there is no specific ans. yar.. giv me d right ans plz. Different Ans. creating confusion.

bye nd tc guys

praveen reddy (practicing Chartered Accountant) (55 Points)
Replied 25 June 2008

TDS has to be deducted considering even the service tax portion. it is only in case of software companies where AMC is paid the difference between service and material comes into picture.hence TDS has to be deducted on the total amount.

Adv. S Sharma (Lawyer) (574 Points)
Replied 30 June 2008

thx

Adv. S Sharma (Lawyer) (574 Points)
Replied 30 June 2008

hi all

is there any specific provision regarding this

Dharinee Charanya . M (Articled Assistant) (36 Points)
Replied 18 April 2009

Sir,

For filling up the Service Tax Returns(ST-3), is anywhere TDS connected with that and also please say me the procedure to fill up the ST - 3 form.

With regards

Charanya.M

Varun Pandya (Practice) (69 Points)
Replied 22 April 2009

Originally posted by :Adv. S Sharma
"	hi all is there any specific provision regarding this	"

S Sharma,

To my knowledge there is no specific provision in s.t. rules.

Both service tax and TDS are to be charged on gross amt.

"gross amt." here would be amount excluding service tax but including TDS

Eg. if Rs. 100 is the gross amt, say 10% is TDS.

Total amt received wud be 110.3 (including) 10.3% service tax

Rs.10 wud be deducted from Rs.100 as TDS

10.3% is charged over and above Rs.100

Dharinee Charanya . M (Articled Assistant) (36 Points)
Replied 20 May 2009

what are FBT rates for the AY 09-10

Neeraj Gautam (Cheif Manager - Finance & Accounts) (32 Points)
Replied 21 May 2009

Since today in TOI it is headline that, FBT might be dissolved/removed in this year Budget which is going to introduce when new cabinate form. Therefore FBT rates for the AY 10-11 is not required but for AY 09-10, Please see the attached file.

Attached File : 35 fbt rates.doc downloaded: 105 times

Satish (CA Final Student) (479 Points)
Replied 23 May 2009

Since the circular mentioned in Hema desai's post covers only TDS on Rent, It cannot be said that it is applicable to all the other catagories. Since there is no clearcut clarification regarding other catagories, TDS shall be made on the gross amount including Service tax. It will be the course of action on safer side.