CA Prashant Nariya (CA) (49 Points)
16 December 2015
Stranger
(.)
(5531 Points)
Replied 17 December 2015
Dear, first of all I would like to point out that service tax @ 14%*** should have been levied on Rs.3,000/- [i.e.,Rs.10,000 (value of taxable services) - Rs.7,000 (abatement)]. Hence, service tax should be Rs.420/- instead of Rs.980/-.
***As per notification no. 22/2015 ST dated 6-11-2015, w.e.f. 15-11-2015, service tax rate becomes 14.5%. Hence it is assumed that any two of the three events, (i.e., service provided, payments received or invoice issued by service provider) has been done prior to 15-11-2015.
Besides, the TDS should be deducted on "amount exclusive of service tax", provided the service tax has been shown in the invoice separately, as duly clarified by CBDT in Circular No.1/2014 dated 13-01-2014.
Hope ur doubt is cleared now..
M Sairam
(Semi Qualified CA)
(421 Points)
Replied 17 December 2015
TDS is deducted on total amount excluding service tax even also tds sections also.
MOHD AFROZ
(STUDENT)
(1480 Points)
Replied 17 December 2015
TDS will be deducted excluding service tax amount...
Sureshchandra R Bind
(Proprietor)
(27 Points)
Replied 17 December 2015
Yes TDS is on Rs.10,000/- exclusive of service tax and abatement is 70% instead of 30%
Sumit
(AM)
(26 Points)
Replied 17 December 2015
Tds will be deduct on amount for Rs. 10000 i.e. excluding amount of service tax
CAclubindia
