hi friends....i m doing articleship in tax based firm and right now i m doing etds return ..i have some queries regarding tds deduction and payment,,,,
plz reply me if u know the solution....
(1) Mr X has raised a bill of Rs 25000 + 10.2% Service Tax to Mr Y. Now Mr Y has to
deduct Tds on this amount. So on which amount Mr Y should deduct Tds ...whether on 25000 or on 25000 + 10.2% Tds i.e. on 27550.......
(2) Mr X has deducted TDS of Rs 2500 on June 2005 and it is paid to Government on 7th April 2006. now this amount should be paid on or before 7th of july 2005. and here Mr X has paid this on 7th April 2006. so whether this expenditure on which tds is deducted is allowed or disallowed,,,if it is disallowed then under which section it is disallowed............
As per the notification the tds is to be deducted on the gross value which should be inclusive of service tax if any,
so the tds value should be deducted on the value to be paid to the person.
CAclubindia
