If contractor issued bill inclusive of service tax, on which amount tds is deductible, contract amount or total amount including SERVICE TAX ??
Say
Contract Amount : 100
ST : 12.36
Total : 112.36
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Tds issues in case of bill with service tax
Replies (12)
| Originally posted by : Janak | ||
 |
If contractor issued bill inclusive of service tax, on which amount tds is deductible, contract amount or total amount including TDS ?? |  |
TDS shall be deducted without including the service tax, if it's charged separately.
.
CBDT vide Circular No. 01/2014, dated 13.01.2014, has clarified that wherever in terms of the agreement/contract between the payer and the payee, the service tax component comprised in the amount payable to a resident is indicated separately, TDS shall be deducted on the amount paid/payable without including such service tax component.
Please clarify what do you mean by inclusive of service tax:
Say service amount is 100/- and service tax thereon 12.36/-
then is the bill a single amount of 112.36/-
or
service charge 100/-
service tax 12.36/-
total 12.36/-
??
TDS should be deducted on rs 100 i.e on contractor amount
If service tax is not shown separately in the bill than deduct tds on whole amount including service tax
Is this circular applicable for may 2014 ca final exam? ???
@ depak gupta ...
Is that notification for tds under all section or only for sec 194j.
There was one sec provision for under sec 194I and now for sec 194J and not for other tds provisions. Therefore tds will be deducted on service tax inclusive value u/s 194C
Pawan this provision applicable all section
Agree with @ mukesh katara
Agree with @ mukesh katara
Service charges 100
Service tax 12.36
Total. 112.36
TDs -2.24
Amout to be paid 110.11
If Contractor issued Composite bill then TDS should be deduct on Gross Value of Bill.
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