Hi Friends,
Can anybody let me know, is TDS to be deducted on service tax portion for the subscripttion charges, they have shown service tax componet separately in invoice..thanks
raj_kanth (accounts) (25 Points)
14 October 2015Hi Friends,
Can anybody let me know, is TDS to be deducted on service tax portion for the subscripttion charges, they have shown service tax componet separately in invoice..thanks
VIPINKUMAR K TIWARI
(Financial Professional)
(196 Points)
Replied 19 October 2015
Must Deduct Tds on Full Amount.
Vishal Goel
(Chartered Accountant)
(1688 Points)
Replied 21 October 2015
Hello, Not agree with Vipin
As per Circular No. 1/2014 dated 13th Jan 2014 TDS is to be deducted on the amount exclusive of service tax if the service tax amount is shown separately. As in most of the cases, Service Tax Amount is disclosed separately in the Invoice, TDS in all such cases would be deducted on the amount exclusive of service tax.
Vishal Goel
(Chartered Accountant)
(1688 Points)
Replied 21 October 2015
Service tax is not an income of the service provider as the service provider would be collecting service tax from the service receiver and depositing this amount with the govt. So, the service tax collected is not an income of the service provider and the service provider is merely acting as an agent of the Govt.
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