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Tds on service tax under rcm

vaibhav (student) (253 Points)

16 October 2012

I want to know whether TDS to be deducted on service tax amount which is required to pay under reverse charge / partial reverse charge mechanism. Please give necessary notification / clarification in this regard.

Tnks in advance.

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7 Replies

SAHIL BANSAL (Student) (170 Points)
Replied 17 October 2012

can u refer any specific section or service where TDS is deducted for RCM

vaibhav (student) (253 Points)
Replied 18 October 2012

A (an individual) provides services to XYZ Pvt. Ltd. in relation to renting of motor vehicles.

Particular	Abatement
Name of service	Hiring of motor vehicles designed to carry passenger.
Invoice value	Rs. 10000
Less: Abatement 60%	Rs. 6000
S.tax payable on	Rs. 4000
Service tax amount	Rs. 494

S.provider liable for s.tax	NIL
S.receiver liable for s.tax	Rs. 494

Now, XYZ ltd. has to deduct TDS on Rs. 10,000 only or considering s.tax paid by them to government directly Rs. 494 also consider for deduction of TDS? (i.e. Rs. 10494)

SAHIL BANSAL (Student) (170 Points)
Replied 19 October 2012

i could not find any provisions of TDS applicable to Hiring of car amd in case it is made applicale under section 194I there is limit of rs 1800000. So u need not to worry about TDS in the given case

vaibhav (student) (253 Points)
Replied 20 October 2012

This case covered under 194C (contract) and not particular 194 I (rent) - please reply in the given contests.

Jacky (Accountant & CA Final Student) (320 Points)
Replied 07 March 2015

As per my opinion tds is to be deducted always on gross amt (not considering service tax amt) whether it is normal case or RCM case.

https://www.eicbma.com/circulars/Cir-01-2014-130114.pdf

CA Prateek Garg (CA in Practice) (1444 Points)
Replied 08 March 2015

No TDS is required to be made on Service Tax Portion if Invoice specifies the amount of Service Tax Separately. [Refer Notification 1/2014]

If TDS amount is mentioned the invoice separately then it is irrelevant whether ST is payble under Reverse Charge or not. Hence No TDS is required on ST amount.