TDS on courier bills

This query is : Resolved

Arun Kumar Gupta (Querist)
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16 March 2011 Sir, May we deduct TDS on Courier bills since they charge serv. tax in bills (if yes, plz mention the limit & percentage)

Rajan Kapoor

Rajan Kapoor (Expert)
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16 March 2011 TDS is applicable U/s 194C @ 1% for individual or 2% for non individual as the case may be.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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16 March 2011 TDS to be deducted u/s 194C on Crossing threshold limit.

Threshold limit:

Single Bill Rs 30000/-
Annual Payment Rs 75000/-

Rates:
Individual/HUF @1%
Others @2%
If PAN not furnished @20% (U/s 206AA).

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Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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16 March 2011 agreed to experts,
deduct as per suggested by experts but don't deduct tds on gross amt. deduct on pure courier value excluding s.t

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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16 March 2011 Murtaza Ji TDS will be deducted on value inclusive of service tax.
As per Circular No.4/2008 dated 28.4.2008, it was clarified that TDS on rental payments would be required to be made only on the basic rental amount without including service tax. In other words, TDS should not be made on the service tax portion of the rent. However, this analogy is not applicable to TDS under other sections. Which means TDS to be deducted on amount including service tax in case of other sections.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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17 March 2011 thanks sanjayji for correcting me.