CA Sahil Garg (Searching for Job) (171 Points)
26 November 2012Suppose, ABC Co. received Professional Services from XYZ, Chartered Accountants. XYZ made a bill of Rs. 112360 in which Rs. 12360 is of service tax and Rs. 100000 is for Services. Now on which amount ABC Co. should deduct TDS???
And further, will answer change, if ABC Co. is a Service Sector Co.???????
ANJALI NEGI
(Chartered Accountant)
(1263 Points)
Replied 26 November 2012
Tds should be deducted on gross amount that includes service tax i.e Rs.112360 as per Section 194J @ 10%.
It is only in case of section 194 I i.e TDS on rent . TDS is deducted on the amount excluding service tax.
Moreover there will be no change in the answer even if ABC&co. is a Service sector co.
Prince Pandey
(C.A Final)
(38 Points)
Replied 28 November 2012
Tds should be deducted at bill amount inclusive of s.t i.e 112360 and in this above mentioned case ABC co. shoud have deduct tds on 112360, if they deducted at 100000 which will @ 10% ( rate specified by Sec 194j) i.e 10000 then officer will automatically issue demand of Rs 1236 ( 11236-10000). So deduct tds on total bill amount inclusive of st .
And ans wiil be same if ABC belongs to service sector
CAclubindia
