Hello Everyone,
My query is regarding TDS deduction on Service Tax Invoice. The vendor's invoice amount is Rs. 15 Lacs with ST that makes to 1685400. My senior has told me to retain his service tax and pay him later after he produces ST Challan. Meanwhile, he has told me to release his rest of the payment. So my actual query is whether I should deduct 1% TDS (since this vendor is proprietorship firm) on 15 Lacs or total amount- 1685400.
Please help.
Dear Sushil,
As per CIRCULAR NO. 1/2014 [F.NO.275/59/2012-IT(B)], DATED 13-1-2014 CBDT decided that wherever in terms of the agreement/contract between the payer and the payee, the service tax component comprised in the amount payable to a resident is indicated separately,tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without including such service tax component.
If it is written in terms of agreement that ST will be charged extra and he shown the amount of ST seperately that no need to deduct TDS on Service Tax portion. You need not to deduct tds even at the time of payment of service tax portion to him when he presents the Service Tax deposit challan.
Regards
Rohit Gupta
Hi Rohit,
Thanks for your response and attention. The vendor has already raised the invoice and it is an one time payment. Kindly guide me how should I proceed with the payment..?
Dear Sushil.
In that case TDS has to be deducted at the time of payment or crediting to customer's a/c whichever is earlier. Deduct the whole amount of TDs from the payment og Rs. 15,00,000/-
Regards
Rohit Gupta
Thanks Rohit,
So I'll do the following. Please correct if its incorrect.
Bill Amount - 1685400
TDS @ 1% - 16854
Remaining - 1668546
Withholding - 185400 (Service Tax Amount)
1st Paymt - 1483146
After the vendor produces the ST Challan, we will pay him Rs. 185400 which was withhold.
Kindly confirm on the above.
Yes bro. you are correct.
You can Use thank button to convey your appreciation instead of mentionning thanks in comments
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Hi Rohit..
Thanks for the advice.. Conveyed thanks by clicking button too..
| Originally posted by : Sushil Shetty | ||
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Thanks Rohit, So I'll do the following. Please correct if its incorrect. Bill Amount - 1685400 TDS @ 1% - 16854 Remaining - 1668546 Withholding - 185400 (Service Tax Amount) 1st Paymt - 1483146 After the vendor produces the ST Challan, we will pay him Rs. 185400 which was withhold. Kindly confirm on the above. |
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Apologies For Opposing Your Opinion......But The Above Calculations Doesnt Seem Correct To Me.
TDS Should Be 1% On Rs. 1500000 i.e. Rs. 15000
Just Pay The Remaining Rs. 1485000
Service Tax Portion Automatically Withheld.
Pay Service Tax Portion As And When He Produces The ST Challan.......No TDS Implication On That Amount.
Dear CA Kumar Ajay,
Please read the full thread. I have already suggested him to do so. But no formal agreement is there in between 2 parties. So he has to deduct TDS on full amount including Service Tax.
Rohit Gupta
That Contract Part, In General Has Not Practical Implication.
Practically Contracts/Agreements Dont Exist.
So I Am Excluding S.Tax.......
You Are Correct By Word Of Law.....I Just Beg To Differ On The Basis Of Practicality.
Sorry to interrupt you guys....I want to know whether this is correct to withhold the service tax amount of service provider till the time he produces you certificate of Service tax payment to govt. account i don't think so. You must pay service tax along with the invoice value it is not required to confirm it from serivce provider whether he has paid it to govt. or not. But one thing you must need to assure that service tax no. of service provider must be on the invoice & should be valid one also. About the TDS on Serivce Tax part in circullar it is written that in case of agreement, pratically there is no agreement between the parties only invoices are there & this thing is running previously as well. Don't know why CBDT has not mentioned that if service tax mentioned separately on invoice TDS need not to be deducted on serivce tax part. Still they issued a circullar with confliction of opinion. ITs my personal opinion.
Hi,
I have query, as I m fresher to this field I need to know how to make settings for TDS in TALLYerp9, for recruitment agency, after enabeling TDS, the second options Set/Alter TDS Details company TDS deductor details screen appears is it compulsory to fill all details.
Secondly, is it correct to make invoice entry in sales (invoice) voucher, if I m wrong plzzzz guide me. 
Hai everyone!!!
My query is regarding service tax calcualation.I'm working in pvt ltd company .their annual income is exceed 10,00,000/- For example :
Annual income :18,00,000(Tds dedcuted)
So the service tax is =(8,00,000*12.36%)=98,880
Kindly check that caculation is correct or not..
Then clarify,Foreign outsourcing project revenue is exemption from service tax or not.
Hi Everyone,
I have one query i.e when company pay service tax how to make an entry in tally.erp 9
plzzz reply
CAclubindia
