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.
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