Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 June 2015 Dear Experts

Our company has engaged a ABC company to keep the boiler(product) in working condition. for this purpose, ABC company has sent engineers to the site done some repair and maintance and raised a bill for the visit of Engg @ Rs. 12,800 per day and also charged service tax on it. our Company is deducting TDS @ 2% on the gross amount.

My question is whether TDS deducted by our Company is as per provivion or Should TDS be deducted @ 10% as technical fees

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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11 June 2015 TDS to be deducted u/d 194J @ 10% on amount excluding Service Tax.

Rupesh Jain

Rupesh Jain (Expert)
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11 June 2015 TDS to be deducted u/s 194J @ 10%.

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Querist : Anonymous

Querist : Anonymous (Querist)

11 June 2015 Thanks Sirs

one more thing i would like to ask that our company is paying freight to the transporter and also paying service tax @ 25% under GTA. is abatement reduced to 70% or still it is 75%

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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11 June 2015 REDUCED TO 70% W.E.F. 01.04.2015.
SEE BELOW LINK--

http://taxguru.in/service-tax/service-tax-rate-abatement-rate-chart-applicable-01042015.html

Querist : Anonymous

Querist : Anonymous (Querist)

11 June 2015 Mr. Sanjay

Still my mangement saying TDS will be 2% because they came here for repair and maintance. there is no service involved.

Rupesh Jain

Rupesh Jain (Expert)
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11 June 2015 ITS TECHNICAL SERVICES AND ITS COVER U/S 194j

Rupesh Jain

Rupesh Jain (Expert)
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11 June 2015 ITS TECHNICAL SERVICES AND ITS COVER U/S 194j

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RahulMehta

RahulMehta (Expert)
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11 June 2015 If there is contract for AMC with the company i.e. then 2% excluding ST.

Since material is also involved in the job, ST should have been calculated on the value computed as per ST valution rule 2A

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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12 June 2015 In your query you have stated that Visit of Engineer Rs 12800 and Service Tax on that. So there is no material involved as per bill. Just because it is is contract for repair and maintenance main nature of work, which is technical service, can not be overlooked. TDS to be deducted u/s 194J @ 10%.