Tds deduct on service tax amount

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 June 2015 Dear Sir

I have received one Invoice it's included Service tax so i have to deduct TDS .

How deduct TDS

Actual amount or Net Amount (with service tax)

and How much TDS i ll deduct we are web designing company..

thks regard

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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16 June 2015 TDS to be deducted on amount excluding service tax for all sections.

The CBDT has issued Circular No. 1/2014 dated 13.01.2014 pointing out that the Rajasthan High Court has taken the view in CIT(TDS) vs. Rajashthan Urban Infrastructure that if as per the terms of the agreement between the payer and the payee, the amount of service-tax is to be paid separately and was not included in the fees for professional services or technical services, no TDS is required to be made on the service-tax component u/s 194J of the Act. Pursuant thereto, the CBDT has decided in exercise of powers u/s 119 that wherever the terms of the agreement/ contract between the payer and the payee, the service tax component comprised in the amount is indicated separately, tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without including such service tax component.

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CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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17 June 2015 Tds will b deducted only on service amount not on service tax part...

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Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2015 Sir I have given below paste one link, this link i got from tally erp 9 tutorial page here they deducted with service part....

http://www.tallysolutions.com/website/CHM/TallyERP9/Service_Tax_New/Accounting_Service_Tax_on_total_transaction_amount_including_TDS.htm