Tds on consultancy

This query is : Resolved

CA Chintan Parikh (Querist)
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27 July 2010 Dear Sir,

If I paid consultancy of Rs. 370000+ service tax 38110 than in which amount Tds Applicable On 370000/- or 408110(370000+38110)

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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27 July 2010 TDS TO BE DEDUCTED U/S 194J ON RS.408110/-

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 section 194J.

srinath

srinath (Expert)
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27 July 2010 also if u could read the section 194J and 194C it says "any payment made to". on the other hand 194I starts with "any income". payment includes service tax while income does not....

so in ur ques it would be with service tax

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Nirpendra Singh

Nirpendra Singh (Expert)
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27 July 2010 TDS should be deducted on Rs 408110 including service tax as per section 194J.

It would be treated as professional charges.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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27 July 2010 TDS should be deducted on the whole amt i.e 408110/-

Agreed with Mr. Sanjay, "NO TDS on Service Tax" : this clarification , till date, is being given for rental payments under 194 I only.

Though this logic stands true for other sections also but as of now there is no such clarification.