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Service Tax or TDS

sreedesh (Executive Accountant) (46 Points)

02 November 2009

Dear All,

Please clarify me is courier charge under service tax or TDS ?

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8 Replies

Ruchi Gupta (Financial Analyst) (268 Points)
Replied 02 November 2009

I think both should be levied

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Sorabh Gupta (Manager ( Taxation )) (877 Points)
Replied 02 November 2009

Sreedesh

Can you clarify that exactly what do you wnt.....................As service tax charge by service provider & TDS is deducted by service recevier.........

sreedesh (Executive Accountant) (46 Points)
Replied 02 November 2009

Dear All.

In my company delivered some items to mumbai, kolkata etc. through courier service like blue dart and first flight

Sorabh Gupta (Manager ( Taxation )) (877 Points)
Replied 02 November 2009

As i told you that both are applicable under different scenerio................Hope you can understand my previous reply............

ashish gupta ( student) (1922 Points)
Replied 02 November 2009

Service tax will be charged by the courier agency as service tax is pplicable on courier services and u have to deduct TDS while making payment to them U/s 194C

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Arun Kumar Singh (GST Advocate) (15220 Points)
Replied 02 November 2009

Service tax will be applicable on courier agency. Courier service contract comes under the purview of 194C & is a contract as designated by Indian Contract Act TDS must be deducted from courier bills if it exceeds Rs. 20000/- pa.

Gautam Joshi (Partner) (361 Points)
Replied 02 November 2009

Hi Sreedesh,

Service Tax is to be levied by Service provider (Courier Agency) to be bared by Service Receiver (your company). So you can say it's your expense for you (provided you dont take CENVAT of the same while paying your Service Tax liability).

On the contrary, TDS is to be deducted on payment made to contractors in case of Section 194C (courier contract is also included). Provided other conditions of individual limit (of Rs. 20k or aggregate limit of 50k is satisfied) one has to deduct TDS on whole amount including Service Tax.

Regards.