tax deduction at source

A insurance company calculate the commission of his brokers, deduct the tds and pay the net amount. After that the broker gross up his brokerage amount and charge service tax on that gross up amount. The insurance company reimburse the service tax without deducted the TDS.

My question is whether the insurance company is liable to deduct tds on service tax element or not. this question arises in the practicle scenerio. 

Replies (15)

i think TDS on ST is not required

TDS is to be deducted on the amount including Service Tax.

 

Regards,

Devendra Kulkarni

TDS is to be deducted on the gross amount including Service Tax.

for more details refer this

TDS on Service Tax


Agree with Devendra & Pulkit
 

Originally posted by : Pulkit Gupta

TDS is to be deducted on the gross amount including Service Tax.

for more details refer this

TDS on Service Tax

 

I agree
 with pulkit and devendra

AGREE WITH PULKIT AND DEVENDRA

Originally posted by : Pulkit Gupta

TDS is to be deducted on the gross amount including Service Tax.

for more details refer this

TDS on Service Tax


AGREE


 

In such case insurance co. is liable to pay the service tax under reverse charge and  co. can not escape from its liability from shifting it on the agents. So Co. shall pay the service tax on the brokerage amount and insurance agents shall also pay such tax which they have collected representing service tax.

I agree..!! TDS deducted on gross amount including service tax

tds to be deducted on gross amount i.e including service tax

TDS is to be deducted on the gross amount including Service Tax.

TDS has 2 be deducted on service tax also.

Only in case of 194I i.e TDS on income from Rent ;TDS is deducted on the amount excluding Service Tax......in all the other cases TDS is to be deducted on the gross amount of Income including Service Tax.

can anyone pls explain  me the foll:

i. Will the broker charge service-tax  to the client?

ii. Why will the insurance company reimburse the service-tax amount to the broker?

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
09 September 2026
SENIOR AUDITOR & ACCOUNTS MANAGER

Anupam Parashar & Co.

Ghaziabad

CA Final

View Details
Company
15 September 2026
Client-site CA associate

Aditya Muley and Co

Mumbai

CA

View Details
Company
09 September 2026
Chartered Accountant

Aviv Global Private Limited

Ahmedabad

CA

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details
Company
ARTICLESHIP 16 September 2026
CA Article Trainee

SR BAGAI & Co.

New Delhi

CA Inter

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details