Should i deduct tds including service tax

27313 views 17 replies

Dear Shwetha,

 

Kindly go through Section 194 I and circular no. 4/2008.....Which says that in case of Payment falls under 194I then TDS should be deducted on the amount after excluding Service Tax portion. There wont be TDS deduction on the part of Service Tax. Only Rental portion is covered.

 

 

Thanks

 

Mihir Doshi

IF THE PARTY IS CHARGING SERVICE TAX IN THE BILL THEN AS PER THE RELEVANT PROVISIONS YOU SHOULD DEDUCT TDS ON GROSS AMOUNT THAT IS 

TDS=  (AMOUNT+SERVICE TAX )*RATE OF TDS

IF THE PARTY FAILS TO CHARGE SERVICE TAX DUE TO SOME REASONS THEN ON OUR PART TDS SHOULD BE CHARGED ON TOTAL AMOUNT AS USUAL.

 

EXCEPTION : SECTION 194I

Dear sir

pl let me advice

if  XYZ raised invoice of Agency Charges of Rs. 35000/= + Service Tax  4326/=  Total 39326/=

please let me knw about TDS ? Should I deduct TDS u/s 194J  on 35000/= or 39326/=

please advice sir
 

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