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Tds deduction??

Guddi (employee) (769 Points)

25 March 2014

My client raised the following bill:

Professional charges: 10000

+service tax: 1236

Total 11236

Should TDS @ 10% be deducted on 10,000 or 11,236

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10 Replies

(Guest)

After new amedment rules.. TDS should be deducted on only service part not on service tax amoutn... so it will b only 10000.

CA SUKSHAM ARORA (CA) (569 Points)
Replied 25 March 2014

now, TDS SHOULD BE DEDUCTED ON 10,000 ONLY

CA Diwanshu Rajpurohit (Asst. Manager) (28 Points)
Replied 25 March 2014

Agree with both of them.

Income Tax Wala: (Fin. Expert) (Chartered Accountants) (2010 Points)
Replied 25 March 2014

on 10000/-

NAVEEN BAJAJ (Asst. Manager Commecial) (23 Points)
Replied 25 March 2014

what is the date of amendment.

Girish C Gaikwad (Chartered Accountant) (55 Points)
Replied 25 March 2014

on Rs.10,000/- provided service tax is separately shown in invoice !!! (Read circular 01/2014 income tax)

NAVEEN BAJAJ (Asst. Manager Commecial) (23 Points)
Replied 25 March 2014

Dear Girish Ji,

you can explain me, how calculate the bonus.

Thanks

CS V Periwal (CS) (80 Points)
Replied 26 March 2014

Dear All, TDS to be deducted on service portionitself and not service tax portion if charged seperately in ionvoice. The relevant circular of Income tax depratment is attached for your reference.

Attached File : 1144745 1301074 no tds on st dt 13 1 2014 1 .pdf downloaded: 175 times

juhihariyani (student) (22 Points)
Replied 26 March 2014

8t should be done on onnly 1000∅

Akshay Garg (Indirect tax trainee) (457 Points)
Replied 30 March 2014

This is very logical change and the change should have earlier as the service tax never becomes part of the income of the service provider he has to further discharge it to the department so there should be deduction of TDS on service value. The same has been cleared by the circular no 1/2014.