Tds on expenses without supporting and service charge

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My auditee is having a service provider and the service provider is issuing bill which contain the expenses part (eg. Air ticket) and service charge but he is not providing any supporting for the expenses incurred (eg Air Ticket). So TDS should be deducted on both amount or not?
Replies (15)

TDS should be deducted on both amount. i.e, On the value on which service tax is charged on the bill

TDS should be deducted on both amount. i.e, On the value on which service tax is charged on the bill

Thank you for your Instant reply

Can u sugest with some reference ?? @ Ajit

Thank you for your Instant reply

Can u sugest with some reference ?? @ Ajit

If the bill is not supported with documents it may attract disallowance as per IT tax, but in my opinion, TDS should be made based on the amount payable for the service received. Hence non availability of a supporting bill should not relate to TDS

TDS to be made on Bill Value - Expenses Portion + Service charges Portion but excluding Service Tax in your case. I hope its clear to you

TDS to be made on Bill Value - Expenses Portion + Service charges Portion but excluding Service Tax in your case. I hope its clear to you

TDS  IS  deducted on air ticket charges less service tax amount. and supporting is not available its is not matter if tds is not Deducted  expenses is disallowed.

thanks & regards

ramanuj

 

But is there any reference for it any circular or case law etc @ all

There is nothing specific for this but deduction of TDS is sure on both amount (Service amount and Exp charged amount) as the same happened in our case under scruitiny . AO asked for the deduction of the same. We also provide technicakl assisstance to our client and charge both service charge and visiting charges in same invoice and got TDS deducted on total amount excluding service tax.

hope now clear!!!

Refer CBDT Circular 01/2014 dated 13.01.2014

My dear friend @ Ajit , i appreciate your keenness to find things. But i think this circular was for inclusion and non inclusion of service tax for calculation of TDS but the question was whether TDS has to be deducted on expenses charged in the invoice . Please correct me if i am wrong.

I know Mr. Ish Kumar. I know what I'm refering. Since you had already replied with no for any reference, my reply was as an additional information for his understanding

I know Mr. Ish Kumar. I know what I'm refering. Since you had already replied with no for any reference, my reply was as an additional information for his understanding


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