ST on TDS (born by receiver)

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

14 July 2011 Hi

X Ltd in Singapore render certain services to Y Ltd in India, which is covered under import of service rules.

Invoice Value = Rs.100/-
TDS u/s 206aa = Rs.20/-

Payment made to x ltd - 100/-
TDS remitted - Rs.20/-

Now Service tax will be computed on 100 or 120?

Kindly reply with relevant section

Thanks in advance.

Regards
VS

U S Sharma

U S Sharma (Expert)
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14 July 2011 service tax would be charged on gross amount of 120/- however 100% input credit is available on it.

Querist : Anonymous

Querist : Anonymous (Querist)

14 July 2011 but definition of “gross amount charged” as given in determination of value rules states - Gross amount charged includes payment by cheque, credit card, deduction from account and any form of payment by issue of credit notes or debit notes.

Is TDS we discussing is covered in the above definition?

Can u tell how do you come to the conclusion of including the TDS? Even few of my friends too having the same opinion of including, but no document to substantiate their views.

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