TDS - Contractors - Income Tax | TDS / TCS #530 [2]

The Chartered Accountant

125 Points Posted on 28 May 2007

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.

ca.Ashish goenka

profession

92 Points Posted on 16 June 2007

tds would also deducted on tds

Guest

460755 Points Posted on 25 February 2008

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.

M.Sriram Shenoy

CA Final

814 Points Posted on 25 February 2008

Tax has to be deducted on the full value of bill inclusive of service tax.

Guest

460755 Points Posted on 25 February 2008

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.

CA. Gurdeep Singh Chawla

C A

7080 Points Posted on 25 February 2008

it should be deducted on the gross amount of the bill including service tax i.e.Rs.10469/=.

ANIL K SRIVASTAVA

C A

47 Points Posted on 25 February 2008

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.

Guest

460755 Points Posted on 26 February 2008

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 ... :-)

O.D.SHARMA

DGM-F & A

1734 Points Posted on 26 February 2008

U have to deduct TDS on gross bill & with Right %age.

Vijay

CA

254 Points Posted on 26 February 2008

HI Its simple. TDS is deductible on gross amount. Means TDS is alos liable on Sevice tax.

Vijay

CA

254 Points Posted on 26 February 2008

TDS is liable on full amount including Service tax

Guest

460755 Points Posted on 07 June 2008

On the total amount including service tax as per circular of sevice tax department

Guest

460755 Points Posted on 29 June 2008

some companies deducting tds 22% from transporters who provide pick-up & droping facilities to his employies.

Mrugesh

CA Final Student

40 Points Posted on 29 June 2008

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?

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TDS - Contractors

The Chartered Accountant

Mukesh Trivedi

ca.Ashish goenka

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M.Sriram Shenoy

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CA. Gurdeep Singh Chawla

ANIL K SRIVASTAVA

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O.D.SHARMA

Vijay

Vijay

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Mrugesh

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