25 November 2014
A client has raised a reimbursement bill of Rs 10000. It has further claimed Rs 1000 as processing charges on the same bill. Service Tax @ 12.36% is charged on the processing charges = Rs 124. Now, my query is :
1) Is TDS deductable on processing charges inclusive of Service Tax ?
2) If yes, then under which section the same should be deducted ?
3) The client has registered with the ST Dept. in the name of sister concern. Can i avail the credit under the sister concern of the client ?
1. IF there is no Service Tax registration no. and PAN of the client mentioned on the bill.And, the client has provided ST Registration No. of its sister concern. How is the credit of Service Tax to be treated? Can we avail the credit ?
2. If no PAN no is mentioned on the bill, are we liable to deduct TDS @ 20%?
25 November 2014
First check limit of Rs.75000 (for processing charges only) If it is crossed then tds provisions aply. 2nd check PAN no. is provided or not. If not deduct @ 20% 3rd tds is not deducted on reimbursement amount. It is to be deducted on processing charges only.
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