Tds charged on service tax
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
12 January 2013
Is tds charged on service tax in case of
1.We taken credit of service tax and
2.Without credit of service tax ?
1.We taken credit of service tax and
2.Without credit of service tax ?
12 January 2013
Except Rental Payments, Service Tax is taken into account for TDS purpose.
.
https://www.taxmanagementindia.com/visitor/detail_rss_feed.asp?ID=546
.
.
https://www.taxmanagementindia.com/visitor/detail_rss_feed.asp?ID=546
.
12 January 2013
The deduction of TDS is based on the provisions of income tax and it do not take the CENVAT into consideration for the same.
Under the income tax act, TDS is to be made on the gross amount of income (only the income portion and donot include any taxes charged on such income)in the case of Rent (u/s 194 I). However in all other cases, TDS should be made on gross amount paid / payable which includes service tax and other taxes.
Therefore, only for the purpose of deduction of TDS u/s 194 I no need to deduct tax on the service tax portion. CBDT had also issued a specific circular vide Circular No. 4/2008 on the above position.
Under the income tax act, TDS is to be made on the gross amount of income (only the income portion and donot include any taxes charged on such income)in the case of Rent (u/s 194 I). However in all other cases, TDS should be made on gross amount paid / payable which includes service tax and other taxes.
Therefore, only for the purpose of deduction of TDS u/s 194 I no need to deduct tax on the service tax portion. CBDT had also issued a specific circular vide Circular No. 4/2008 on the above position.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CAPITAL GAIN REDEVELOPED FLAT
- CLOSING STOCK QUERY
- Requirement under FEMA &RBI
- Gst on travel by air for business purposes
- GST ISD Query on various AMCs
- Taxation on Old jewellery sold
- ITR 44AD SECTION
- Query regarding reporting of exempt foreign remuneration in ITR
- PF wage ceiling
- Error in uploading Form 10BD
- REGARDING ITR FILING QUESTION
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
