TDS

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 April 2011
Dear Sir,
pl clarify whether TDS deduct for section 194C,194J including Service Tax or not.

Regards

Hari

CA.SHAHZAD SAYYED

CA.SHAHZAD SAYYED (Expert)
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14 April 2011 Dear
Service Tax is Collected on behalf of Government so while deducting TDS Service Tax Portion should not be added.

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CS ,CMA Shambhu Kr. jha

CS ,CMA Shambhu Kr. jha (Expert)
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14 April 2011 Dear Friend
TDS been deducted on total amount paid .

it always includes service tax if any included in bills/Invoices .

Thanks

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CS ,CMA Shambhu Kr. jha

CS ,CMA Shambhu Kr. jha (Expert)
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14 April 2011
Dear Sahzad you want to say that if invoice is like

Invoice charges 50,000/-
Service Tax 5,000/-
Edu.&h.Edu Cess 150/-
Total 55,100/-
so as per you tds will be deducted only on Rs 50,000/- not on Rs 55,100/-

Thanks

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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14 April 2011 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. So TDS, in case of sec 194C & 194J should be deducted on amount inclusive of service tax.

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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15 April 2011 Except rental payament, you have to count the service tax element for deducting TDS. In the above example you have to deduct bill value add service tax