Service tax on tds

Rohit Tulshyan (RTProfessionals) (333 Points)

11 April 2013  

Dear Members,

                            This is regarding Service tax payment on TDS amount for CA firms.

Lets take an example, For FY 12-13,

Their is a CA firm XYZ Co.  and its client ABC Pvt. Ltd.

Now, CA firm needs to pay its service tax for 4th QTR fy 12-13. ABC pvt. Ltd. will make a provision for audit fees for FY 12-13 and depsoit TDS which will be shown in 26AS of CA firm for FY 12-13. In such case, on what amount should the CA firm pay tax. Practically, CA firm have no idea how much amount of TDS will be deducted as the same will be known only by 30th may. In such a case on what amount should the Firm pay Service tax as TDS will be considered as a receipt under cash basis of accounting.