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Service tax not charged in a bill

CA Shobha Karmakar (CA Practice ) (65 Points)

13 January 2014

Sir,

one of my client had given a contract for purchase of land. the broker is an individual and has no service tax registration. Now when he has given his bill it includes the cost and incidental expenses to accquire land and commision. No service tax has been charged. Further a deduction of tds is done @ 1% being individual contractor u/s 194C. How far is the bill acceptable? Please guide whether it covers the section of contractor or broker and what should be the tds deducted.

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5 Replies

Nishad (student) (52 Points)
Replied 13 January 2014

even though broker had not charged service tax it doesn't matter may be his total income does not go beyond the limit required for service tax registration number you may deduct TDS @ 1% the credit will be available for broker if he is having pan card.

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CA Shobha Karmakar (CA Practice ) (65 Points)
Replied 14 January 2014

Thanks Nishad

But still my query is that whether tds be deducted as per the provisions of contractor u/s 194 c @ 1% or commission or brokerage as per Sec 194H @ 10%

Manoj Agarwal (Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com) (3456 Points)
Replied 14 January 2014

The Bill is acceptable if it contains the name and address of the service provider. The service provider need not be an assesse under service tax. TDS should be deducted @ 10% if PAN No. of deductee is available, otherwise @ 20%.