Calculation of service tax

This query is : Resolved

vijay arora (Querist)
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18 August 2012 Kindly clarify the following situation

Ours is a service provider company. Suppose we issue an invoice for 1000 and charge 126.30 as service tax and sent it to our client.

Question is when our client deducts 2% TDS on how much value he should deduct the TDS whether on 1000 ( actual service cost ) or on 1126.30 ( the total amount of invoice )

Regards

Vijay Arora

C.A Anshul Singhal

C.A Anshul Singhal (Expert)
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18 August 2012 TDS SHOULD DEDUCT ON WHOLE AMOUNT MEAN RS 1126.30.
BILL + SERVICE TAX

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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18 August 2012 On Total amount i.e 1126.30 (except in case of TDS on rent 194I)

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RENGARAJ R.K

RENGARAJ R.K (Expert)
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21 August 2012 This is a long pending disputable issue. However, TDS is deductible on the amount including Service tax , i.e Rs.1126.30 in your case. I agree with the experts.