05 January 2010
Dear My query is if B party is billing expenses alongwith service tax to A company can A company Deduct TDS on expnses as well as on service tax while paying or to pay bill without deducting TDS on service tax and give ref section with support of this explanation
Querist :
Anonymous
Querist :
Anonymous
(Querist)
05 January 2010
Dear My query is if B party is billing expenses alongwith service tax to A company can A company Deduct TDS on expnses as well as on service tax while paying or to pay bill without deducting TDS on service tax and give ref section with support of this explanation
05 January 2010
Dear Service Tax is not your Receipt/Income, you collect the service tax on behalf of Central Government that mean you play the role of intermediary therefore there is no TDS on Service Tax Amount, there is Special Notification for this in Mar or Apr 2009, you can see on Service Tax web site
06 January 2010
Income tax is to be deducted on the entire bill amount (inclusive of service tax) except in the case of rent. In the case of rent income tax need to be deducted on rent element alone vide CBDT Circular 4/2008 dated 28/04/2008.
07 January 2010
TDS to be deducted on entire bill (inclusive of service tax) except in case of rent. In case of rent TDS not to be deducted on service tax vide circular no. 4/2008 dated 28.04.2008