CA Arindam Sain (Practice) (308 Points)
06 August 2010Hi friend,.......
I have stuck up in a problem could u pls help me....?
A corporate agent of insurance compnay got commission of Rs 50000/-, Co.calculated service tax @ 10.3% and deducted also TDS on the acumulated amount i.e., commisiion+S.Tax, Whether the co. is correct or it should deduct tax at source only on Rs 5000/-, otherwise there is doube taxation......pls help me....
M.Sriram Shenoy
(CA Final)
(814 Points)
Replied 06 August 2010
Raju. There is no problem. you can deduct TDS including service tax, as there is no double taxation. If TDS is deducted including ST, then the recipient has to pay less tax during the year end as TDS portion also includes tax deducted on ST. If tax is deducted only on commission, then he may have to pay a bit more during year end as Tax is deducted only on gross amount. Because of this there is no significant difference.
Dheeraj Shenoy
(CA FINAL)
(173 Points)
Replied 06 August 2010
Hey.. As per CBDT notification TDS should not be deducted on Service Tax Part...
ASHISH YADAV
(Chartered Accountant)
(119 Points)
Replied 06 August 2010
TDS should be deducted including service tax amount
CBDT had exempted only for making payment of rent only on which while deducting TDS service tax amount to be excluded
CA Trinath Galla
(student)
(3130 Points)
Replied 07 August 2010
tds should be deducted on service tax amount also.
notification says that tds need not be deducted on service tax paid on rent and not others.
Durga Bhramarambika
(ca,cs,b.com)
(27 Points)
Replied 14 August 2010
yes.....i agree with ashish sir.....
gaurav aggarwal
(paid aaistant)
(21 Points)
Replied 19 August 2010
https://www.taxguru.in/income-tax/a-view-on-deductibility-of-tds-on-service-tax-and-other-expenses-included-in-bill-amount.html
Tds is not deductable on service tax in the following service u/s 194C/194I/194J.please go on above link.
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