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service tax & tds certificate

A/c entries 1587 views 1 replies

DIPAK AGARWAL

Service

554 Points Posted on 18 December 2007

for example: rent amt. rs.100 serv. tax there on rs.10 total bill amt. rs.110 tds to be deduted rs.5 net amt pid rs.105 Now i have to show the rent bill total amt rs.110 in tds return as amount paid & tds there on Rs5 whereas the receiving party will show in their books as rent rs.100 because serv. tax rs.10 is liability to him. further we also issue the tds certi. to him of 110 showing amount paid. that the party say it differ from his books. what should we do in this senario?

Replies (1)

M.Sriram Shenoy

CA Final

814 Points Posted on 05 March 2008

Mr.Deepak Agarwal ji.Dont worry about what the recipient says.You prepare and issue the TDS certificate containing the full amount i-e rent including service tax.

The recipient may be confused, as there will be a difference, when income is reconciled as per P&L Account and TDS certificates.He can very well prove the fact to the Assessing Officer, that the amount mentioned in the TDS certificate contains Service Tax component and hence income as per TDS certificates are higher than that of the corresponding amount shown in the P&L Account.

There are many appeals regarding this issue.