Our Co. is taking services of a Company Sec. We are paying him Rs. 50000 p.a. Also the Co. is paying him petrol and other expenses, which he incurres in visiting the Co. and working for it. These will be around Rs. 8000 p.a.
Now whether TDS is to be deducted on Rs. 50000 or on Rs. 42000.
it will deduct on Rs. 50,000
it will deduct on Rs. 50,000
Hi Shamita,
TDS to be deducted on the gross amount paid inclusive of all taxes(if any) as per sec 194J.
Hi Shamita
1. If CS Invoice showing 42,000 Fees + 8000 Exp = Total Bill Amount Rs. 50,000 then u have to deduct TDS on RS 50000 u/s 194 J.
2. If CS prepares seperate invoices or Bill for Rs. 42,000 as fees & another invoice for Rs. 8000 as exp then TDS is only deducted on Rs.42,000 u/s 194 J.
But in both the cases service tax is applicable.
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