Hi, I am involved in a sub-contracting work with client organization. While making the final payment on the invoice, the customer has deducted TDS of 2% on our total invoice amount (Base amount+Service tax ). Is TDS applicable on total invoice amount or only on base amount ?
Also should I include the TDS deduction in my final invoice to the customer.
Please help me out.
1. TDS is deductible on basic amt (excluding amt of service tax, if any).
2. TDS u/s 194C (Contractor) is deductible @ 1% if the deductee is an individual or HUF and it is @ 2% in any other case. So, Pls check your case.
3. You cannot claim deducted TDS by charging it into your invoice issued to customer rather you can claim TDS deducted while filing your income tax return. The certificate of TDS deducted (Form 16A) will be issued by the organisation who deducted your TDS.
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