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On wich amount TDS should be deducted

Naveen Chand Khulve (CA) (1521 Points)

14 December 2009

We have received an invoice of Rs 30575 related to training charges. The bifurcation of amount is as follows:

Traning Charges: Rs 25000

Pumplet charges: Rs 3000

Service Tax on Rs 15000: Rs 2575

Total : 30575

Please confirm that on which amount TDS should be deducted.

Thanx in advance

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10 Replies

Amol Gopal Kabra (CA,CS,DISA) (Practicing CA) (8539 Points)
Replied 15 December 2009

Tax has to be deducted on Training Charges and Service Tax. Pamphlets dont come under the purview of TDS. SO Tax has to be deducted on 25000 + 2575 i.e. 27575/-

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Dilip (Working) (408 Points)
Replied 15 December 2009

If it is an single invoice then you need to deduct on gross bill amount. To be on safer side, my suggestion is to deduct on Rs. 30575/-.

Dintakurthi Tirumala (CA FINAL) (15994 Points)
Replied 17 December 2009

Agree with Amol Gopal Kabra

OM SAI SRI SAI JAI JAI SAI

shirish nagchandi (AFO) (42 Points)
Replied 21 December 2009

normally if it is a singal bill,the tds should be deducted on the gross amount of the billi.e. Rs. 30575.00,, how ever in the given case if bill has been classified , no tds is tobe required on service tax amount , since it will be tax on tax.

Shudhanshu Agrawal (Business) (2570 Points)
Replied 21 December 2009

According to provisions TDS has to be deducted on invoice amount......moreover u cannt seprate service tax from invoice amount.....except TDS in case of Rent u/s 194I......on which a notification has come.

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KRISHNA KUMAR R C (CHARTERED ACCOUNTANT) (313 Points)
Replied 22 December 2009

TDS has to be deducted on whole amount of bill including paumplet charges as section 194J tells tds has to be done for any payments

Pushkar Mandke (CA and CMA) (Employee) (30 Points)
Replied 23 December 2009

TDS has to be deducted on invoice amount.

However if on the invoice if they have mentioned "VAT/CST" on some component of the invoice, TDS will be aplicable only on the remainning components of the bill.

NOTE : TDS is applicable on service tax charges in the invoice but not on VAT/CST charged in the invoice.

shailendra (C.A. FINAL) (189 Points)
Replied 23 December 2009

It's clear that if there is a composite bill for services and reimbursement of expenses, then TDS should be deducted on the amount of total bill.

VIPUL (ARTICLE ASSITANT) (68 Points)
Replied 26 December 2009

TDS should be deducted only on tranning charges and services tax, not on others so it should be deducted only on 27575/-

Jagdish Bhalia (Practicing CA) (453 Points)
Replied 26 December 2009

TDS should be deducted on gross amount of Bill i.e Rs. 30575.( Including Service tax). TDS should be deducted on Service Tax Also (Except in case of Rent).