CAN ANYBODY HAVE UPDATE THAT CAN TDS BE DEDUCTED ON PROFESSIONAL SERVICES (GROSS+SERVICE TAX) OR ON GROSS AMOUNT ONLY.
REGARDS
CHANDAR
CAN ANYBODY HAVE UPDATE THAT CAN TDS BE DEDUCTED ON PROFESSIONAL SERVICES (GROSS+SERVICE TAX) OR ON GROSS AMOUNT ONLY.
REGARDS
CHANDAR
TDS is to be deducted on Gross amount only because service tax is not an income
dear chandar & hemchand,
as per the law existing today, TDS need to be done even on service tax portion for professional charges.
the benefit of not doing tds on service tax portion is given only for rent that also by way of notification. in absence of similiar notification, tds needs to be done for service tax portion for other payment.
regards
kanti jain
TDS would be deucted on Service tax also(except in case of rent).
TDS should be deductable on any amount payable to the party as professional fees. see normaly we are account the professional fees as expenses including service tax. so the total amount liable to TDS
True....
TDS is to be made on any amount paid (including service tax), if such payment is for contract or professional fees.
however in case of rent, TDS should not be made on the service tax portion
as per income tax act
194J. (1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of—
(a) fees for professional services, or
(b) fees for technical services, [or]
[(c) royalty, or
(d) any sum referred to in clause (va) of section 28,]
shall, at the time of credit of such sum to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to [ten] per cent of such sum as income-tax on income comprised therein.
SO, the TDS to be deducted on gross amount. (including service tax)
yes, TDS to be deducted inclusive of Service Tax only.
for professional service TDS to be deducted on service tax component also
TDS has to be deducted including service tax (Gross amount) for Sections 194c and 194J only. Because those sections state that Tax to be deducted on "Any sum" whereas other sections state "On income".
So TDS has to be deducted on any amount payable to the party including re-imbursement and other expenses.
If a profession claimed traveling expenses along with his fees in that case TDS to be deducted on ?.........
TDS should be deductable on any amount payable to the party including service tax so the total amount liable to TDS
TDS SHOULD BE DEDUCT ON GROSS VALUE OF INVOICE SERVICE +SERVICE TAX
As per the interpretation of Sec 194J TDS should be deducted on gross amount , but reimburesment of travelling expenses are not any fees provided for services , they are reimburement of expenses & not income .
So in my view no TDS should be deducted on Reimbursement. Do anybody confirm my interprtation.
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