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TDS on service tax?

HIMANSHU AGARWAL (STUDENT) (24 Points)

01 July 2011

if suppose a work contract is given to mr. a

his bill would be

services=Rs. 10000

+Service tax @ 10.3%=1030

total = 11030

TDS is deducted only on 10000

What will be the disallowed expenses-

1030 or 11030?

please quote text of particular section if possible

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7 Replies

CA. ANKUR JAIN (CA.....) (2800 Points)
Replied 01 July 2011

Only the amount on which tds has not been deducted will be dissallowed under income tax act

in your case 1030

CA Saiyum khan (Practicing CA) (685 Points)
Replied 01 July 2011

Dis Allowance would be Rs.1030 only if it would have charged to P&L account. If service tax credit would have been taken by routing through current assets then it would not be disallowed even if no TDS is deducted.

1 Like

M. N. JHA (CA) (8316 Points)
Replied 02 July 2011

Yes only the portion on which TDS is not dected i.e. Rs 1030.

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 02 July 2011

Originally posted by : CA Saiyum khan
	Dis Allowance would be Rs.1030 only if it would have charged to P&L account. If service tax credit would have been taken by routing through current assets then it would not be disallowed even if no TDS is deducted.

agreed

C.A SHASHANK GOYAL (Chartered Accountant) (362 Points)
Replied 02 July 2011

Yes , I do agree with all of my above friends , but we can also claim deduction of service tax is such is deducted in subsequent year and paid before filing the return of income u/s 139(1) .For this disallowance you can also take the reference of section 40(a)(ia).