Sanjay H G (Tax Consultant) (138 Points)
03 March 2017
Sanjay H G
(Tax Consultant)
(138 Points)
Replied 03 March 2017
our onther branch is located in chennai ther partner ddeduct the tds on gross sales
for exmp:
total sales - 1,00,000
service tax15%-15,000
total sales is - 115000
tds2% on (115000) -2300
its correct or not
Sanjay S
(Chartered Accountant)
(1375 Points)
Replied 03 March 2017
As per the CBDT Circular 1/2014 dated 13.01.2014, TDS need not be made on the amount of service tax included in the invoice, provided, the Service tax amount is shown separately.
Hence in your case, if the ST amount is shown separately, the Tax needs to be deducted only on the income amount (Exclude ST) ie., TDS shall be x% of Rs. 10,000 only if ST Rs.1,500 was shown separately in the invoice.
Regarding the Chennai branch, the partner would be right only if the invoice was not showing ST amount separately.
Also, plz check the applicability of TDS, depending on the nature of income and the TDS limits, esp if Rs.10,000 is the only amount you have received from the firm, you may not be liable for TDS.
Harikrishna
(student)
(214 Points)
Replied 03 March 2017
RAHIL
(ACCOUNTANCY)
(247 Points)
Replied 04 March 2017
Not TDS should be deducted on the Service Tax amount.
Sanjay H G
(Tax Consultant)
(138 Points)
Replied 04 March 2017
thank u sir ,
and its a Partnership Firm
Every Month Chennai Branch send the money
Partner Ship Firm OR Revenue Sharing Business its Liable for TDS ?
CAclubindia
