Tds apllicability

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dheeraj kumar (Querist)
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24 January 2013 SIR

We have received security maintenance bill of 22500 from a service provider ABC Ltd. service provider has not charged any service tax on the bill.

we are a public limited company

now my consultant is saying that i will have to deposit 75% of service tax(9.27%)from my own pocket

now i have two queries

1. whether the consultant is correct in asking me to pay 75% of service tax

2. if he is correct then whether i have to deduct tds on 22500 or (22500+2086(service tax)

i will be extremely thankful, if you explain the exact concept behind deposit of service tax

thanks & regards
dheeraj kumar

CA Vipin Jain

CA Vipin Jain (Expert)
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25 January 2013 Hi Dheeraj,

first Let me explain regarding service tax- If the concern, from which you are taking security service, is a Company (as you mentioned ABC Ltd.) then you need not to pay any part of service tax. It would be applicable only if your security service provider agency would be Individual, HUF, Partnership Firm etc (but not Company).

As service tax is not payable by you so question of TDS on service tax does not arise.

regards

CA Vipin Jain

dheeraj kumar

dheeraj kumar (Querist)
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25 January 2013 SIR

SORRY, MISTAKE ON MY PART, ACTUALLY I MENTIONED NAME OF ABC LTD. FOR EXAMPLE

ACTUALLY ITS A INDIVIDUAL

NOW PLEASE SUGGEST THE WAY OUT

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CA Vipin Jain

CA Vipin Jain (Expert)
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25 January 2013 Dear Dheeraj,

If security service provider is Individual and you (you orgnisation)is company then you are liable to pay 75% of service tax (75% of 12.36%). and for TDS on this service tax, I think should not be applicable as TDS (contractor) is applicable on the amount payable for contract and not for tax. Over and above you are not paying service to the security service provider. You are not paying service tax on behalf of security service provider, it is your liability. But if you deduct TDS and deposit in govt account, it will not harm for anyone as security service provider will get credit of this TDS while filling his return.

all above is my opinion only.

regards

CA Vipin Jain

dheeraj kumar

dheeraj kumar (Querist)
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25 January 2013 THANK YOU SIR