Tax

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Querist : Anonymous

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Querist : Anonymous (Querist)
27 May 2010 For Payment to Non Resident, if the Tax has to be borne by the deductor, then TDS rate has to be applied on the grossing up value. What about the service tax or R&D cess. Whether the rate of service tax & R&D cess to be applied on Gross up value or not.

27 May 2010 Service tax also to be levied on the gross up value.

28 May 2010 Agreed, It will be levied on Gross up value. As the gross value is the actual billing value from the point of view of service tax.




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