calculation invoices

This query is : Resolved

sachin (Querist)
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25 October 2007 Dear friends,

For the calculating TDS on the services,
Whether TDS should be calculated on the invoice amount i.e. (fees + service tax) or only fees amount i.e. not on service tax amount?
IF we are calculating on the invoice then there is tax on service tax it is correct ?

Thanking you

sachin

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)
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25 October 2007 Yes you are correct, TDS should be on Full value of invoice,
both of the taxes are separate so there is no tax on tax.

S.RAVICHANDRAN

S.RAVICHANDRAN (Expert)
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25 October 2007 As for TDS is concerned that is for the gross amount of the bill.( inclusive of Excise duty,sales tax,service tax etc).

If the bill includes services tax, then TDS is for the invoice amount including the service tax.

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