20 November 2013
hello,Everyone
I have a query, whether service tax is to be deducted on tds amount.
For Ex : Advance Received for service to be provided Rs 100 tds deducted Rs 10
so whether on this 10 service tax is applicable ; if yes then when ....? whether on reflection in 26 as or at the time of advance received ??
20 November 2013
Service tax is applicable on gross amount i.e on Rs.100/- in the above case.
In case of advance received towards service to be provided in future, then service tax on the advance amount to be calculated and paid to the department before 5th(in case of online payment 6th) of the following month in which advance amount received.
For e.g Advance Rs.100/-(Net received Rs.90 and TDS is Rs.10/-) received on 10.11.2013 then Service tax of Rs.12.36/- (12.36% on 100)is to be paid to the department on or before 6.12.2013 / 05.12.2013 as applicable.
CAclubindia
