Tds on professinal services

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 April 2013 Is there tds on total amount of bill including service tax or not ? give explanation of answer in detail ?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

05 April 2013 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.

In short--
For 194I - Deduct TDS on amount excluding service tax.
For other section - Deduct TDS on amount including service tax.

Querist : Anonymous

Querist : Anonymous (Querist)

05 April 2013 what about tds on professional services inclusive of service tax and other section and how tax effect done in service tax and TDS explain please by giving example?

Upgrade to CAclubindia Pro. Subscribe Now!

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

05 April 2013 Say Fees 1000
So Service Tax 12.36% i.e.,124

Total 1124

TDS 10% of 1124 i.e., 112

Querist : Anonymous

Querist : Anonymous (Querist)

06 April 2013 suppose 100000 is fee and on that 10% service tax is charged so total amt of bill is Rs 110000.
TDS is 10% on 110000 i.e 11000
so if TDS RS 11000 is deposited in Income give 110000-11000 =99000 to professional. Then professional how much deposited in ST department if 10000 then there is loss to profsnal and 9000 its right so which answer is right? Can you explain in detal

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

07 April 2013 Fee - 100000
ST - 10000
Total- 110000
TDS - 11000
Paid to Professional - 99000

Professional collected service tax from you and deposited. So out of 99000 he will deposit Service Tax Rs 10000. So finally he has Rs 89000. He will get credit of TDS Rs 11000. So Finally he gets 89000+11000=100000