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TDS

CA.VATSAL SHAH (SERVICE) (202 Points)

08 March 2008

Dear All,

if bill for particular services is of Rs.100 service tax is Rs.12.36.So tds to be deducted on Rs.100 or on 112.36?

pls clarify

Thanks

CA.Vatsal Shah

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8 Replies

O.D.SHARMA (DGM-F & A) (1734 Points)
Replied 08 March 2008

Dear, this is on gross value IE on 112.36/-

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CA.VATSAL SHAH (SERVICE) (202 Points)
Replied 08 March 2008

you are right. but in some company, they deduct on Rs.100 only arguing that there should not be tax on tax.so pls clarify

CA.VATSAL SHAH (SERVICE) (202 Points)
Replied 08 March 2008

you are right. but in some company, they deduct on Rs.100 only arguing that there should not be tax on tax.so pls clarify

CA.VATSAL SHAH (SERVICE) (202 Points)
Replied 08 March 2008

you are right. but in some company, they deduct on Rs.100 only arguing that there should not be tax on tax.so pls clarify

(Guest)

TDS is to be deducted from amount paid as such. means on Rs. 112.36.

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Jitender Garg (Article(FINAL YR Pass Out)) (863 Points)
Replied 08 March 2008

On 112.36

Arpit Jain (management trainee) (26 Points)
Replied 08 March 2008

TDS is tax in respect of income of the Payee and service tax being charged by him is not his income, he is required to deposit the whole of service tax charged by him to the treasury. So strictly speaking TDS has to on Rs. 100 only but wrong practice of TDS on gross amt is prevalent in most of the organisations.