Tds and service tax related query

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CS Amit Kumar

463 Points Posted on 03 December 2012

Dear All,

I Request all of you to please advice me on below matter:

One company is pleased to offer me an assignment for Secretarial Services on retainership basis for 4 Month i.e. December to March and will pay me Professional Fee of Rs. 17000 PM and Establishment Expenses of Rs 8000 PM till march and in between tax liability arising out will be borne by me and hence they will pay me after dedicating the TDS.

Is this service liable to collect service tax by me, this is my first assigment for this FY.

Please suggest me that will any liability will arise on me for registration or any other with any authority(Service tax or TDS) and are they also liable to deduct TDS on this.

Regards

Replies (5)

Yogesh Bhandari

CA FINAL Student

429 Points Posted on 03 December 2012

Service tax liability and registration not required. TDS liability will arise on part of the deductor/payer (Client).

Devendra

Chartered Accountant

4780 Points Posted on 03 December 2012

As your Gross Receipts during the Financial Year 2012 - 13 does not exceed Rs. 10 Lakhs, you are not liable to Service Tax.

Secondly, the Company shall be liable to deduct TDS u/s 194J of the Income Tax Act, 1961, on payments made to you as Professional Fees.

Regards,

Devendra Kulkarni

CA Sourabh Goenka

Chartered Accountant

249 Points Posted on 04 December 2012

No service tax liability will be there..

For the Tds liability is on company paying the money.. company will deduct 10% TDS on Professional services u/s 194J.

Hence in present case you will receive cheque of

17000*4+8000*4=100000

Company will pay.. 100000-10% of 100000= 90,000

Rs. 10,000 will reflect in your 26AS, that which you can claim refund in your income tax return for A.Y. 2013-14.

CS Amit Kumar

463 Points Posted on 05 December 2012

Thanks to every one for prompt reply,

Further, is there any option to save TDS also or refund is only a source availble to me.

Regards

Devendra

Chartered Accountant

4780 Points Posted on 05 December 2012

You can apply to the Jurisdictional Assessing Officer for a Certificate u/s 197 of the Income Tax Act, 1961 for Deduction of TDS at lower rate or Non-deduction of TDS by enclosing a Tentative Income Statement of the year for which you do not want your clients to deduct TDS, with the prescribed form.

Regards,

Devendra Kulkarni