Could anyone please help me with this ?
Our client is charging their customers service tax and deducting TDS under contractor clause (194C). Basically, if the invoice amount is 100, service tax is charged @ 10.3% on it and thereafter TDS is deducted at 2 @ under 194C on the entire amount ( including service tax ) . The net billed amount is then debited to the party as sundry debtor to be cleared later.
The receipt of the amount is equivalent to the net billed amount, in this case 100 + 10.3 - 2.206 (TDS) = 108.094. Since while filing ST3 return for service tax, the gross amount received in money is to be entered ( which is 108.094) and the return (ACES method) automatically calculates 10.3% on the receipt amount which is misleading because our gross billed amount is 100, how to enter the same?
CAclubindia
