RESPECTED ALL,
ON WHICH AMOUNT T.D.S. SHOULD BE DEDUCTED WHEN PARTIAL REVERSE CHARGE MECHANISM IS APPLICABLE AND 25% SERVICE TAX IS PAID BY SERVICE PROVIDER.WHETHER T.D.S. SHOULD BE DEDUCTED ON INCLUSIVE AMOUNT OF SERVICE TAX OR EXCLUSIVE AMOUNT?
ARPITA VINODKUMAR MEHTA (ARTICLE) (88 Points)
20 November 2013RESPECTED ALL,
ON WHICH AMOUNT T.D.S. SHOULD BE DEDUCTED WHEN PARTIAL REVERSE CHARGE MECHANISM IS APPLICABLE AND 25% SERVICE TAX IS PAID BY SERVICE PROVIDER.WHETHER T.D.S. SHOULD BE DEDUCTED ON INCLUSIVE AMOUNT OF SERVICE TAX OR EXCLUSIVE AMOUNT?
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 20 November 2013
The service receiver will deduct tax at source on amount including 25% service tax paid to provider.
Thanks,
kumar hattanna
(Officer - Excise)
(525 Points)
Replied 21 November 2013
TDS need to be deducted from the total value of Invoice.
Manoj Agarwal
(Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com)
(3456 Points)
Replied 21 November 2013
Say Manpower Service Value = 100.00
Service Tax on 25% of Value = 3.09
Total Invoice Value = 103.09
TDS should be deducted on Rs. 103.09 @ 1% or 2% u/s 194C as the case may be, by the service receipient company from the Invoice of Individual/Partnership Firm/HUF/AOP.
Service Tax on 75% Value = Rs. 9.27 should be directly paid to the credit of government vide GAR-7 Challan by the company.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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