venkat (Accountant) (222 Points)
23 August 2012DEAR FRIENDS,
I HAVE A DOUBT REGARDING TDS.
IF I RECEIVE A BILL AMOUNT OF 112000,IN WHICH RS100000 IS CONTRACT AMOUNT AND 12000 IS SERVICE TAX.
ON WHICH AMOUNT I HAVE TO DEDUCT TDS(1% OR 2%),WHETHER ON BILL 112000 OR ON 100000 WHICH IS CONTRACT AMOUNT. SERVICE TAX IS NOT INCOME OF SERVICE PROVIDER.
PLEASE REPLY AS SOON AS POSSIBLE.
THANKS IN ADVANCE
VENKATESH
Hemchand Kohli
(Accountant)
(889 Points)
Replied 23 August 2012
TDS should be deducted on Rs. 100,000.00 Only as service tax is not a income, however you may deduct on total amount also.
DAYANANDA K N
(ACCOUNTS EXCECUTIVE)
(575 Points)
Replied 23 August 2012
It should be on total bill amount which in your case is Rs.1.2 lacs.
Regards
Dayananda
varun
(article assistant)
(86 Points)
Replied 23 August 2012
TDS should be deducted for the whole amount(112000) @ 1% or 2 % whichever is applicable.
Anand Raghavendra
(Manager-Internal Audit)
(111 Points)
Replied 23 August 2012
The entire amount is liable for Tax Deduction.Since the value of the service includes the service tax.
ACMA Obulirajan R
(M.Com, ACMA)
(1119 Points)
Replied 23 August 2012
TDS should be deducted on total amount. Only incase of rental we should deduct tds without service tax.
Hemant Kumar
(Accounts Manager MBA (Fin) CMA*)
(6450 Points)
Replied 23 August 2012
| Originally posted by : varun | ||
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TDS should be deducted for the whole amount(112000) @ 1% or 2 % whichever is applicable. |
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CA Daksh Dawar
(Chartered accountant )
(80 Points)
Replied 24 August 2012
In this circular, board has clarified that tax deduction at source (TDS) under sections 194-I of Income Tax Act would be required to be made on the amount of rent paid/payable without including the service tax. [Circular no. 4 dated 28-4-2008]
Therefore in your case, TDS is to be deducted on the whoe of the amount i.e Rs.1,12,000
Ketan Majmudar
(Asst Manager F & A)
(153 Points)
Replied 24 August 2012
TDS should be deducted on the whole bill amount i.e.Rs.112,000/-
CA Sanjay Bag
(CHARTERED ACCOUNTANT)
(3340 Points)
Replied 24 August 2012
CA. ROHIT GUPTA
(Service)
(133 Points)
Replied 24 August 2012
TDS will be deductible at the total amount inclusive of service tax eith @ 1%/2% depending on the status of payee.
CA. NARAYAN BHANDARI
(Manager-Accounts)
(57 Points)
Replied 24 August 2012
Sanjay M Vishwakarma
(Service )
(21 Points)
Replied 25 August 2012
it should be on the entire amount including service tax i.e.112000/-
CAclubindia
