Dear All,
When I go to deduct tds on contract that deduction made including service tax or excluding service tax? Please tell me. What are same thing to tds on rent?
Advance Thanks & Regards
Sathis
Dear All,
When I go to deduct tds on contract that deduction made including service tax or excluding service tax? Please tell me. What are same thing to tds on rent?
Advance Thanks & Regards
Sathis
On full amount including the amount of service tax
yes tds is to be deducted on the bill amount + service tax
TDS deduction must always be inclusive of service tax.
However there is a circular for excluding service tax while deduction of Tax on Rent paid.
Praveen is correct.......only in case of rent it is different........................
Ya even i agree with Praveen...........................
50000/- Contract Value
5150/- Service Tax
55150/- Total Bill
so you have to deducted Tds on 55150/-
Yes........TDS has to be deducted on 55150.....from the assesse's point of view its an expediture (Contract charges)irrespective of the fact that 5150 is service tax component for the service provider.
Hence TDS has to be deducted on Rs. 55150/-...........
In case of payments in relation to rent, TDS need not be deducted on Service tax portion. This position has been clarified by Cirular No 04/2008.
In case contract TDS dedut on Total bill amount (Basic+ST) and Rent case it will be deducted on only rent amount ( excliding service tax)
in normal circumstances, you have to deduct TDS inclusive of service tax. However , there is only one exception to it. TDS is to be deducted exclusive of service tax when u pay rent on commercial property.
TDS has to be deducted on Amount excluding service tax because the service tax collected by the deductee is his liability and not his income
Agreed with above discussions... TDS has to be deducted on bill value on all services execpt in rent....
TDS will be deducted on the gross bill ammount i.e including Service Tax.In rent case we debit the full amount ( Including S.T. ) to Rent A/c & not mentioning anywhere the ST separately, hence actual rent paid is including ST,hence TDS deduction would be on Rent + ST.
Attn: Ranjan
TDS has to be deducted on Amount excluding service tax because the service tax collected by the deductee is his liability and not his income
TDS has to be deducted whenver the payment has been made.....irrespective of whethter its an income or not to the deductee.............
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