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Service tax & tds

Piyush Agarwal (Manager(Accounts)) (29 Points)

14 December 2013

Dear friends, My company has hired heavy vehicles for internal Material handling purpose on fixed monthly rent under a contract. At present Tds is being deducted u/s 194C & ST is being levied on reverse charge mechanism on 100% of the bill value. The entire ST being charged in the name of the company. Is the TDS & ST treatment correct?

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4 Replies

GAUTAM SHARMA (Audit Assistant) (353 Points)
Replied 14 December 2013

If ST is 100% , it means abatement is taken.

It's correct.

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Harendra Kumar (Tax Advisor ) (1326 Points)
Replied 14 December 2013

Yes, your concept in right way but a little bit observation non-availement of N/F of GTA. Various Notification regard GTA services.

Before nonavailement N/F (Notification)

i.e = Ass. Val. 100.00 *12.36% = 12.36

After availed N/F

100-(25% N/F) = 25 = 100-25= 75 of 12.36%= 9.27

Diff. amt. 12.36-9.27 = 3.09

Hope you understand

Piyush Agarwal (Manager(Accounts)) (29 Points)
Replied 14 December 2013

Is sec 194i not applicable.

GAUTAM SHARMA (Audit Assistant) (353 Points)
Replied 15 December 2013

Sec.194I doesn't attract.Please Read the Section 194-I carefully, not libreally, as libreal interpretation may lead to absurd result.Please Don't misunderstand it.It is a guide to interpretate law, so that u can become a good interpretator