Tds

This query is : Resolved

Jitender Bhatia (Querist)
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07 August 2014 An Invoice contains material and repair charges both (means electricity item and repair) so will we deduct tds on repair only or whole invoice excluding service tax....

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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07 August 2014 no tds is applicable on service tax amount

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 August 2014 TDS to be deducted on amount excluding service tax. The CBDT has issued Circular No. 1/2014 dated 13.01.2014 pointing out that the Rajasthan High Court has taken the view in CIT(TDS) vs. Rajashthan Urban Infrastructure that if as per the terms of the agreement between the payer and the payee, the amount of service-tax is to be paid separately and was not included in the fees for professional services or technical services, no TDS is required to be made on the service-tax component u/s 194J of the Act. Pursuant thereto, the CBDT has decided in exercise of powers u/s 119 that wherever the terms of the agreement/ contract between the payer and the payee, the service tax component comprised in the amount is indicated separately, tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without including such service tax component. Complete notification may be seen from below link--

http://law.incometaxindia.gov.in/DIT/Circulars.aspx

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Rupesh Jain

Rupesh Jain (Expert)
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07 August 2014 In circular 1/2014 use only section 194J

not use the section 194C.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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07 August 2014 no, even on all other section of tds , no tds on service tax portion is applicable refer 1/2014 properly.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 August 2014 TDS should be deducted only on Repair Charges excluding Service Tax.

For all sections TDS should be deducted on amount excluding Service Tax.