Menu
TDS - Contractors
Deducting TDS on the gross amount which is inclusive of service tax, Wont it lead to Double Taxation
Replies (42)
Deducting TDS on the gross amount which is inclusive of service tax, Wont it lead to Double Taxation
Dear Rao,
Your casee is covered by section 194J (Professional and Technical services) and not 194C (Contractual Payments). Therefore the tax has to be deducted at the applicable rate of TDS + SC + EC on the gross amount of bill.
CA Mukesh Trivedi
Godhra.
tds would also deducted on tds
Hi,
I was going thru all the questions and the repy regarding the TDS payment deduction.. im still confused as its not clear that whether TDS has to be deducted on gross exclusive of service tax or inclusive. i also need to know how you calculate for e.g if the contractor's payment is 25000/- + service tax i.e @ 12.24% than how much i need to pay after calculating tds
note : the contractor is a stationery printing co.
Tax has to be deducted on the full value of bill inclusive of service tax.
This is a case of Composite Contract.
The contract separately specifies cost of materials as Rs 1000 and for other works say Rs.200.Service Tax is to be levied on 1200 or on 200. Further I would like to know the nature of 2% levied on all the taxes payable.
it should be deducted on the gross amount of the bill including service tax i.e.Rs.10469/=.
The CBDT has considered the issue and clarified vide letters dated 8.08.2007 & 24.09.2007 that tax has to be deducted on the gross amount without making any distinction between Service Tax and other income.
thank you for your reply.. i now know that TDS has to be deducted on gross amount only and then service tax need to be added ... :-)
U have to deduct TDS on gross bill & with Right %age.
HI
Its simple. TDS is deductible on gross amount. Means TDS is alos liable on Sevice tax.
TDS is liable on full amount including Service tax
On the total amount including service tax as per circular of sevice tax department
some companies deducting tds 22% from transporters who provide pick-up & droping facilities to his employies.
When TDS should be deducted? when payment more than 20000 or invoice boked for more than 20000. because in books of TDS in is written as TDS deduct when single payament more than 20000, at the same time TDS not deductable for More than Single Payment or Credit more than 20000. Whiat is proper?
Recent Threads
- Time allowed to buy another asset
- ITR not processed for the FY 2024-25
- Gift of money to my wife.
- Tax Audit If you show Loss
- GST Tax invoice Value Rs..234000
- Can I claim benefit under 54F if I sell my equity
- Income tax refund 25/26
- Who is responsible for paying GST Liability (If th
- Excess Payment on RCM
- AOC4 auto population of previous year data
Related Threads
CAclubindia
