As per circular 1/2004 TDS to be deducted on exclusive of Service Tax where amount mentioned seperaely. Is it applicable to all sections or only for 194I and 194J
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Tds on service tax
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| Originally posted by : Deepak Tapse | ||
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As per circular 1/2004 TDS to be deducted on exclusive of Service Tax where amount mentioned seperaely. Is it applicable to all sections or only for 194I and 194J |  |
Circular No. 01/2014, is applicable for other sections as well because in Para 3 it states specifially that,
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......tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without including such service tax component.......(Extract)
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The various provisions of Chapter XVII-B requires different classes of assessees to deduct tax at source on various nature of payments.
Dear Mr.Tapse,
As per relevant circular that is applicable only applicable in case of Residential House.As per my opinion and best of my knowledge.another view is that if you are deductor then as a safer side you may deduct on inclusive amount of service tax.
Mr Alwani, there has been a clarification on this matter in November 2013. If TDS is deducted on Service Tax for non - rent services, excesses tax will be deducted.
Tds to be deducted only on the basic fees if service tax is charged separately. This is not only for 194 i & 194 j sections but for all sections.
I opine that, As per the circular no.01/2014, if the service tax on value of service mentioned separately in the contract entered between service provider (resident) and service receiver no need to deduct tds on service tax portion irrespective of provisions under the chapter XVII-B under chapter
My view is that if basic value of bill is Rs.1000/-, Sevice Tax @ 12.36% is Rs.124/-. TDS should be deducted on Rs.1000/- & not on Rs.1124/-.
As per Circular No.01/2014- No TDs is Deductibkle if service tax portion is separterly disclosed in invoice.
And this Circular is applicable for Entire Chapter of xvii-B (Chapter of TDS)
Can you please explain with figures?
Agreed with Mr.Mantri..
yes i agree with the above discussion
what exactly shud be written in the service tax clause of the agreement acc to dis circular??
Its not applicable for sec 195 as it only talks abt residents
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