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TDS Doubt on Service Tax

NANDURI RAVI SURYA NARAYANA MU (ACCOUNTANT) (194 Points)

28 June 2010

Pls clarify the doubt about TDS deduction u/s. 194C

Our company engaged work contracts to a company, details as follows

Works contract Amount Rs. 1,80,000/-

ADD: Service Tax: Rs. 18,540/-

Total Bill Rs. 1,98,540/-

so TDS will be deduct on 1,98,540 or 1,80,000/- pls clarify my doubt immediately.

Regards

RAvi

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9 Replies

CA KHAN AURANGZAIB (ERP FINANCIAL CONSULTANT) (85 Points)
Replied 28 June 2010

TDS will be deducted on Gross amount and not net amount except TDS on Rent (i.e. Gross amount of rent for the purpose of tds does not include Service Tax).

TDS will be deducted on gross amount.

C.Balaji (Learner) (1867 Points)
Replied 28 June 2010

Dear Sir....

Please see this link....

/forum/whether-tds-to-be-deducted-on-service-tax-22634.asp

SALIL (PRACTICE) (63 Points)
Replied 28 June 2010

198540

Mayank Saraogi (Learner) (170 Points)
Replied 28 June 2010

Agree

(Guest)

198540

Ritesh Jain (CA, CS in Job) (675 Points)
Replied 29 June 2010

Hi,

As WC includes material part also so there's a clarification came in last year from deptt that , if the material part is shown seperatly in bill than TDS should not be deducted on that...in other case if bifurcation has not been made then TDS to be deducted on gross amount including ST also.

So tds will be on 1,98,540/-

Regards

CA kanhaiya kumar (CA PASSED IN NOV.11 EXAM) (197 Points)
Replied 29 June 2010

I am Agree to C.A Ritesh Jain (Sir)

CA Raghav Bansal (Chartered Accountant) (98 Points)
Replied 29 June 2010

Hi friends

TDS will be deducted on the gross amount of Rs. 198540/- not on Rs. 180000/-. Tds is deducted on the amount including Service Tax except in case of Rent under SEc 194-I.