TDS on Service Tax

TDS 4705 views 28 replies

quote this..

 

service tax on 50,000 wil be only 5150  i.e., @ 10.3% n not  6438.

Replies (28)

quote this..

 

service tax on 50,000 wil be only 5150  i.e., @ 10.3% n not  6438.

Can you plz give any ref or circular no ..................

CIRCULAR NO. 4/2008, DATED 28-4-2008 og IT Act

Dear Trinath,

As per that circular

  tax deduction at source (TDS) under sections 194-I of Income-tax Act would be required to be made on the amount of rent paid/payable without including the service tax.

It only say's about Sec 194-I what about other Sec.?

 

I agree with Suhas and the said circular talks about section 194 I only. Nobody should interprete the said circular in his/her own discretion. TDS should be deducted on gross amount including service tax in all other cases except Rent.

 

Yes, that circular is applicable only for rent and on all other payments, TDS is to be deducted on gross amount, i.e., inclusive of Service tax.

Goodmorning Everybody,

TDS only applicable if, the total Rent paid is morethan 1,20,000/- P.A., which not included Service tax. So, TDS rate will be applicable over 1,20,000/-  only.

Bibhuti Bhusan Das

Refer this link

Dear all,

I m clear about rent i.e sec 194-I. I m asking about the other sec.

 

tds is not deducted on another tax so only rentable amount is taxable not service tax

tds is not deducted on another tax so only rentable amount is taxable not service tax

tds is not deducted on service tax

Originally posted by :Sudhakar Shetty V. K.
"
Yes, that circular is applicable only for rent and on all other payments, TDS is to be deducted on gross amount, i.e., inclusive of Service tax.
"

 

agree.........................

If tds is deducted on entire professional charges amount inclusive of service tax what will be the accounting effect ie:how much will be the income of the service provider...if only the professional charges then dont you think the service provider is given excess credit of tds  on service tax also.

 

please clarify  iam going mad...


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