28 January 2016
Hii I am a query regarding the impact on the service tax if I deduct tds amount on service tax portion also, even it was shown separately in invoice My opinion is If Gross amount 100 Service tax 14.5 If I deduct tds on 114.5. I.E.11.45
As per service tax reverese calculation for 11.45×100/10 then gross value is 114.5 on that service tax is 16.60 so the service tax is short levied by 2.1 (16.6-14.5) is this approach is correct ??
28 January 2016
Yes,you have added servicetax on service value and caluculating service tax on it.So difference is 14.5% on servicetax(14.5*14.5%) But why you did this,just because of your wrong caluculation of tds servicetax liability wont change,.
28 January 2016
I am internal auditor for one reputed company they approaching deducting tds on service tax I am advice them not to deduduct the tax on service tax portion if you deduct it would be amount to additional liability as per service tax is it correct ?
29 January 2016
how it is happens,servicetax levy wont effect just because they deducted tds wrongly.servicetax dept wont check how u caluculate TDS.and you are completely confused and missing basic rule of levy of servicetax.
if tds deducted on servicetax,its okay do file tds return accordingly and dont deduct tds on servicetax herefrom,thats the only suggestion to company.
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