Tds and service tax on vendor's bill

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 April 2013 Hi experts, I get confused with applicability of both Tds and Service Tax on vendor's bill...

Pls explain with example

CA Priti Surana

CA Priti Surana (Expert)
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03 April 2013 If a service is coming under TDS provisions, as well as under service tax provisions, TDS shall be deducted after adding service tax in the bill amount.

For example if bill amount is Rs. 100, service tax Rs. 12.36, total bill shall be of Rs. 112.36, and TDS say @10% shall be deducted on Rs. 112.36, i.e. Rs 11.24. and balance i.e. Rs. 112.36-11.24=100.12 shall be paid to the provider of service.

However TDS on rent is deducted before adding service tax on rent.

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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20 May 2013 No except rent the TDS has to be deducted on bill value plus Service Tax. All services are liable for TDS but if the Turnover is below 10 lacs of the service provider he may not charge Service Tax in that case you have to deduct TDS provided the total bill value does not exceed the minimum limit fixed under TDS. As soon as the bill value exceeds the minimum value for TDS you have to deduct TDS

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