Tds u/s 194c

Dear All,

What will be the TDS rate on Security Service.

Should Tds be deducted on Gross amount including Service Tax or service tax will be excluded?

Replies (5)

TDS would be 1% for Ind/HUF and 2% for rest. Tax is to be deducted on the total bill amount including service tax.

Originally posted by : CA Suraj Lakhotia

TDS would be 1% for Ind/HUF and 2% for rest. Tax is to be deducted on the total bill amount including service tax.


100% Agree with Suraj Sir.....

But won't this amount to tax on tax?

tds deducted on gross amount including servicetax.

at the rate of -

if payment made to indivisual/huf-1%

others-2%

Dear Giridhar,

It's not a tax on tax....since you get credit of Service Tax paid as Input Tax Credit.

The rate of dedcution stands at 1% for IND/HUF and 2% for others. The limit of 30,000/- for single payments or Rs. 75,000/- also applies.

 

Prateek

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