Tds

This query is : Resolved

H R RAMASWAMY (Querist)
Follow

03 May 2013 whether the tds is to be deducted on the service tax payable by the company under reverse charge mechanism

eg: company paying service tax on Advocate fee of Rs. 1 lakh which liable to pay service tax under reverse charge mechanism, whether TDS is to be deducted on Rs. 1 lakh or Rs. 1 lakh Plus Service tax.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

04 May 2013 TDS to be deducted on Rs 1 Lac only @10%.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

04 May 2013 As per Circular No.4/2008 dated 28.4.2008, it was clarified that TDS on rental payments would be required to be made only on the basic rental amount without including service tax. In other words, TDS should not be made on the service tax portion of the rent. However, this analogy is not applicable to TDS under other sections.

In short--
For 194I - Deduct TDS on amount excluding service tax.
For other section - Deduct TDS on amount including service tax.

Upgrade to CAclubindia Pro. Subscribe Now!

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

14 June 2013 Yes it is only for rental that TDS is to be deducted without including ST but in all othr cases TDS has to be deducted on both fee plus ST