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Tds on mansupplier contractor

TDS 809 views 3 replies

Earlier we were deducting TDS on Manpower contractor's Invoice on full value i.e. inclusive of service tax. (Rs. 1000 + 124 ST = 1224/- @ 2% 25/-)

W.e.f. 01/07/2012 there are changes in Service Tax Rule, as per new rule service provider should charge 50% Service Tax  -) and service receiver (Company) should pay 50% service tax . In this regard, TDS will be deducted on Rs. 1000 + 62/- = 1062/- @ 2% Rs. 21/-. Pl correct if i am worng.

 

Replies (3)

TDS will be deducted from gross value . service tax payment by service receipent is just  like a TDS  Payment .

I have the same doubt,pls clarify

 

1. services  provided or agreed to be provided  by way of supply of manpower for any purpose
 
Service tax payable  as under :
Service Provider -25%
Service receipient - 75 %
 
2. services  provided or agreed to be provided  by way of works contract

Service tax payable  as under :

Service Provider -50%
Service receipient - 50 %
 
You should deduct tds on gross bill amount.
 
 




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