tds on professional services

This query is : Resolved

pranav (Querist)
Follow

29 August 2009 professional service= rs 22000
service tax = rs 2266
total = rs 24266

is it correct to say that tds on professional charges deductible on rs 24266 as the amount credited in the account of professional is rs 24266. please clairfy.

thanx in advance.

CA Vanesh Nadar

CA Vanesh Nadar (Expert)
Follow

29 August 2009 No. It is would be incorrect as the TDS is deductable on the Gross Amount i.e. Rs.22000/- and the amount of credit ould be the same.

It would be considered as if so you are deducted the tax on Rs.22K.

Nazir

Nazir (Expert)
Follow

29 August 2009 Hey Pranav,

I think you need are correct you need to deduct TDS on gross amount + service tax i.e. 24266/- in all cases except Rent, in case of rent you only need to deduct TDS on gross amount.

Nazir

Upgrade to CAclubindia Pro. Subscribe Now!