Jitendra Kumar Sahu (Account Manager) (106 Points)
12 December 2010A insurance company calculate the commission of his brokers, deduct the tds and pay the net amount. After that the broker gross up his brokerage amount and charge service tax on that gross up amount. The insurance company reimburse the service tax without deducted the TDS.
My question is whether the insurance company is liable to deduct tds on service tax element or not. this question arises in the practicle scenerio.
CA Sahil Singla..
(Service Tax )
(3746 Points)
Replied 12 December 2010
i think TDS on ST is not required
Devendra
(Chartered Accountant)
(4775 Points)
Replied 12 December 2010
TDS is to be deducted on the amount including Service Tax.
Regards,
Devendra Kulkarni
CS LLB Pulkit Gupta
(https://www.facebook.com/pages/Life-and-Promises/553962034682487)
(16631 Points)
Replied 12 December 2010
TDS is to be deducted on the gross amount including Service Tax.
for more details refer this
| Originally posted by : Pulkit Gupta | ||
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TDS is to be deducted on the gross amount including Service Tax. for more details refer this TDS on Service Tax |
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I agree
with pulkit and devendra
Raghunath Prasad
(WORKING)
(385 Points)
Replied 13 December 2010
| Originally posted by : Pulkit Gupta | ||
|
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TDS is to be deducted on the gross amount including Service Tax. for more details refer this TDS on Service Tax AGREE |
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Bharat Khurana
(Student)
(153 Points)
Replied 13 December 2010
In such case insurance co. is liable to pay the service tax under reverse charge and co. can not escape from its liability from shifting it on the agents. So Co. shall pay the service tax on the brokerage amount and insurance agents shall also pay such tax which they have collected representing service tax.
Misha
(CCI STUDENT.....)
(773 Points)
Replied 13 December 2010
I agree..!! TDS deducted on gross amount including service tax
ayushee dey
(CA Final Student)
(161 Points)
Replied 13 December 2010
tds to be deducted on gross amount i.e including service tax
CA Tushar kabra
(B.com CA.Final student)
(42 Points)
Replied 14 December 2010
TDS is to be deducted on the gross amount including Service Tax.
sakshi taneja
(qualified ca n searching job)
(341 Points)
Replied 14 December 2010
TDS has 2 be deducted on service tax also.
CA Namrata ghosh
(CA)
(55 Points)
Replied 15 December 2010
Only in case of 194I i.e TDS on income from Rent ;TDS is deducted on the amount excluding Service Tax......in all the other cases TDS is to be deducted on the gross amount of Income including Service Tax.
nilima jain
(Article clerk)
(25 Points)
Replied 15 December 2010
can anyone pls explain me the foll:
i. Will the broker charge service-tax to the client?
ii. Why will the insurance company reimburse the service-tax amount to the broker?
CAclubindia
