TDS

Dear, this is on gross value IE on 112.36/-

you are right. but in some company, they deduct on Rs.100 only arguing that there should not be tax on tax.so pls clarify

you are right. but in some company, they deduct on Rs.100 only arguing that there should not be tax on tax.so pls clarify

you are right. but in some company, they deduct on Rs.100 only arguing that there should not be tax on tax.so pls clarify

TDS is to be deducted from amount paid as such. means on Rs. 112.36.

On 112.36

TDS is tax in respect of income of the Payee and service tax being charged by him is not his income, he is required to deposit the whole of service tax charged by him to the treasury. So strictly speaking TDS has to on Rs. 100 only but wrong practice of TDS on gross amt is prevalent in most of the organisations.

TDS will be on gross amount includng service tax