06 June 2014
We received the bill from road contractor with Service Tax & Vat. Now the problem is that as per the CBDT circular dated 13th Jan 2014 had been declared that TDS not to be deducted on Service Tax Portion. But in this case the Party Has charged the VAT on Basic+Service Tax also. Hence I want to know on which amt TDS is to be deducted.
Eg :-
Basic Amt 100 ST 12.36 Total 112.36 VAT @5%5.62 Grand Total : 117.98
06 June 2014
How in your case he is charging service Tax on VAT portion also as it is double Taxation, certainly there is something which is not clear as there cannnot be double taxation in case of ST.
however From the Circular it is clear that TDS is not required on service Tax therefore you can avoid ST for TDS calulation.
CAclubindia
