Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 June 2013 Sir,
Our company has made an AMC with a company for the year 13-14.The terms of payment consists of 50% advance with the work order & balance in 4 equal installments. The contract amount is Rs.651000/-(excluding service taxes).whether for the initial advance payment we are required to deduct TDS on Rs.325500/- or on Rs.365732/-(including service taxes).please suggest

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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27 June 2013 On Advance payment TDS only deduct advance amount. you can deduct Rs.325500/-

Guest

Guest (Expert)

27 June 2013 As per Section 194C, the words used are "Any person responsible for paying ANY SUM"

Any sum, means you are liable to deduct the TDS on any sum paying to other party.

Hence tds to be deducted amount including service tax.

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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27 June 2013 Hi sir

I totally agree TDS will apply inclusive of Service tax only.

Here the author query is on advance payment we need to deduct tds inclusive of service tax or not because the contract terms service tax will apply. According to my view,tds can be deducted on service tax portion at the time of actual booking of invoice. how ever now he is paying only advance, so can be deducted only on the payment

Guest

Guest (Expert)

27 June 2013 With due respect, Ramesh Sir.

I take section as any sum and any sum includes advance also.