19 April 2013
I am confused with the deduction of TDS in case of reverse mechanism of service tax. I want to know that,on what amount i.e. the gross amount including 100% service tax OR the amount including the service tax which is to be paid by service provider in case of reverse mechanism, TDS will BE deducted.A numeric Example is Given Below:- ALT-1 Taxable Service-10,000 Add S.T.@12.36%- 1236 Total -11,236 Less TDS@2% -224.72
ALT-2 Taxable Service-10,000 Add 25% of S.T.@12.36% (Manpower Services)-309 Total -10309 Less TDS@2% -206.18
20 April 2013
TDS is to be deducted on Gross amount payable to person If ST @ 25% payable to service provider then TDS is to be deducted as per Alternate 2.
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