Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 April 2014 Dear Sir

I Received bill for the month of april 2014 bill amt 10,000 and servicetax 1236, total bill amt 11,236, in the case of contractor 2% on which amt we will be tds calculate
amt 10,000 or 11236

CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)
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03 April 2014 TDS is deductible on Rs.11236

CA Jitender Sharma

CA Jitender Sharma (Expert)
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04 April 2014 Dear,
You need not to deduct tds on Service tax portion as per CIRCULAR NO. 1/2014 [, DATED 13-1-2014

( TDS under Chapter XVII-B of the Income-tax
Act, 1961 on service tax component comprised in the payments made to residents)

Hence you need to deduct tds on Rs10000/-

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CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)
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04 April 2014 Hi Jitendra,

This circular (1/2014) is for TDS deducted u/s 194J (i.e. professional / technical services) and not for section 194C (contract payment)

Hence in present case tax will be deducted on Rs. 11236 only

CA Jitender Sharma

CA Jitender Sharma (Expert)
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04 April 2014 Sir,

Circular applies for all TDS provisions under chapter XVIIB. not for specific sections.