May i request you to please guide me on the following :
ABC co. has taken services from lawyer needs to pay the service tax under reverse charge. Is TDS deductible on amount Including Service tax or only on the bill amount( i.e excluding service tax.
30 July 2012
Tds amount shall be deducted on amount inclusive of S. tax, if payment is covered under section 194C and 194 J, so in your case TDS should be deducted on amount inclusive of Service TAx.
31 July 2012
TDS as u know, what does it mean, TDS on income, so where service receiver has to pay tax due to reverse charge mechanism, TDS is to be deducted on amount of bill, i.e exclusive of service tax.
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