14 April 2011
Dear Sahzad you want to say that if invoice is like
Invoice charges 50,000/- Service Tax 5,000/- Edu.&h.Edu Cess 150/- Total 55,100/- so as per you tds will be deducted only on Rs 50,000/- not on Rs 55,100/-
14 April 2011
As per Circular No.4/2008 dated 28.4.2008, it was clarified that TDS on rental payments would be required to be made only on the basic rental amount without including service tax. In other words, TDS should not be made on the service tax portion of the rent. However, this analogy is not applicable to TDS under other sections. So TDS, in case of sec 194C & 194J should be deducted on amount inclusive of service tax.
15 April 2011
Except rental payament, you have to count the service tax element for deducting TDS. In the above example you have to deduct bill value add service tax
CAclubindia
