TDS

This query is : Resolved

biswojit (Querist)
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06 August 2010 Namste to All!

I have an querry.Though it's old one, but kindly clear me as per recent laws,notifications or circulars.

Q-Whether TDS shall be deducted on basic value or gross value of a bill.

Case 1 -Professional Fees + service tax(in case of taking input credit and not taking credit)= Gross value

Case 2-Other service charges + Service tax (if taking credit and not taking credit)

Case 3- Rent charges + service tax(if taking credit and not taking credit)

As per my view in case 1 & 2 TDS shall be deducted on Gross value(whether taking input credit or not).But in case 3 the TDS shall be deducted on basic value only as per CBDT circular.

pleae reply urgently.

regards
Biswojit

CA Sanat Pyne

CA Sanat Pyne (Expert)
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06 August 2010 CASE 1 TDS WILL BE DEDUCTED ON GROSS VALUE.

CASE 2 - ON GROSS VALUE

CASE 3 ONLY ON RENT
FOR BETTER CLARIFICATION
VISIT

http://www.simpletaxindia.org/2008/08/tds-on-service-tax-us-194-j-on.html

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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06 August 2010 you are correct

Refer these

for Point No. 1 & 2
circular F. NO. 275/73/2007IT(B) dated 30-6-2008.

For point no.3
CIRCULAR NO 4/2008 , Dated: April 28, 2008

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VINOD ARORA

VINOD ARORA (Expert)
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06 August 2010 Except for rent payments, TDS is deducted on gross amounts paid including taxes. Availing input credit does not affect the amount on which TDS is to be deducted.