Tds on subcontracts

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Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2014 when tds is deducted, the amount on which tds is deducted is inclusive of service tax or not????

Nikhil Kaushik

Nikhil Kaushik (Expert)
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24 September 2014 exclusive of service tax provided that the service tax amount is separately provided in the invoice.

Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2014 If service tax amount is not separately provided in invoice then what does this mean?
Does it mean that service tax is not allowed????

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Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2014 If service tax amount is not separately provided in invoice then what does this mean? Does it mean that service tax is not allowed????

Nikhil Kaushik

Nikhil Kaushik (Expert)
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24 September 2014 for eg: If the bill is like this:

Service fee: Rs 100

Service tax: Rs 12.36

In the above case, you can deduct TDS on Rs 100 and pay service tax full amount.

So the amount paid (assuming 194J is applied) Rs 90 + 12.36 = Rs 102.36

If however, the bill is like:

Service fee: Rs 112.36

Then deduct TDS on the whole of the above amount

Amount deduction: Rs 11.24

Amount to be paid 101.12

Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2014 It means if service tax is not separately provided in invoice it is included in that gross amount???

Nikhil Kaushik

Nikhil Kaushik (Expert)
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24 September 2014 it means that if service tax is not provided, then you dont have to worry and deduct TDS on the whole amount.