Myself Piyush Jain, I am working as an accountant in one of the small & medium size company. My query is related to both service tax & tds.
Recently I generated an invoice with value of Rs. 13,000 + 12.36% service tax i.e. Total Rs. 14,607. When i received invoice, client has deducted 10% on a/c of tds i.e Rs. 1,461/- and net received was Rs. 13,146/-. Now my query is if I pay Rs. 1,607/- as service tax to govt. my receipt would be Rs. 11,539/- (Rs. 13146-1607), isn't it double deduction on my company's income? I am really confused, please help me.....
Guest
Guest
(Expert)
15 April 2013
u should show ur income Rs.13000/- only in both service tax n income tax. but under income tax u ll claim Rs.1461/- as TDS coz ur clientt has deducted tDS on service tax portion also (to be on safer side). but ur purpose will be solved if u claim RS.1461/- as TDS. even i hv face this issue in income tax assessment but the abovesaid view is accepted by all Income Tax officers.