06 November 2013
We charge Rs.30,000/- for Client A and add service tax @ 12.36%; the service tax amount comes to Rs.3,708/- Since the total amount payable comes to Rs.33,708/-, the client deducts TDS @ 10.1% amounting to Rs.3,404.50; The nett payment to us (service provider) is Rs.30,303.50/-;
The TDS includes 3404.50:
a) TDS on base incoice value 30,000 - 3030.00 b) TDS on service tax 3704 - 374.50
In this scenario where the Service Tax charged is higher and the amount realised as Service Tax on our hands is lower
a) Actual figures here for the service tax portion alone - Rs 3708.00 b) Actual vs. realised less TDS - Rs 3404.50
what is the Service Tax amount we are liable to remit to the Govt.? Is it the realised figure of Rs.3404.50/- or the actual figure of Rs.3,708/-?"
06 November 2013
Actual figure of 3,708 needs to be deposited wid govt. .... Since, under income tax, u shall get the TDS credit of the same while finalising ur tax liability at the end of FY of at the time of paying advance taxes....
06 November 2013
Actual figure of 3,708 needs to be deposited wid govt. .... Since, under income tax, u shall get the TDS credit of the same while finalising ur tax liability at the end of FY of at the time of paying advance taxes....
06 November 2013
Here some calculations are made wrongly. In fact,while making TDS they should take the basic invoice value only and not the ST charged by you also.So,TDS @ 10.1% should be Rs3030-00 only and not Rs3404/-.While making payment to the govt,you have to reduce the collected amount by the TDS and pay the balance only.So,3708-3404.5=Rs303-50 is sum payable along with the returns....mjk
CAclubindia
