Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

TDS / clarification / urgent

karthe (Analyst) (31 Points)

17 August 2011

Dear All,

A) Can anyone advise if the below calculation is right for a consultancy service provided for an asset management company?

B) As per my knowledge, Service Tax can be avoided or claimed back and TDS 10% can be only claimed at the time of E-Filing which is actually next year in a case of an Individual.

226500

23330 + (ST @ 10.3%)

---------------

249830

24983 - (TDS @ 10%)

---------------

224847 (Net)

=======

Thanks in advance for your help.

Reply
Follow
Share

4 Replies

Dintakurthi Tirumala (CA FINAL) (15994 Points)
Replied 17 August 2011

No, u r Calculation is incorrect there is no need to deduct TDS on service tax amount if it is paid separatly. In u r case the fee paid Rs.226500 and service tax on it is Rs.23330 so u need to deduct TDS on fee Rs.226500 is Rs.22650 only and u r payment amount is 226500+23330-22650=227180. But some of the companies following like u r calculation due to lack of knowledge or for safe reason.

OM SAI SRI SAI JAI JAI SAI

Upgrade to CAclubindia Pro. Subscribe Now!

Mihir (Wealth Manager) (5293 Points)
Replied 18 August 2011

Only for rent, TDS is not to be deducted from the service tax. In your case, your calculation is correct.

CA.B.Sivakumar (-) (162 Points)
Replied 18 August 2011

Dear Dintakurthi Tirumala,

Pls refer any circular reference number or any notification of Income tax act to justify your view. i do aggree with the calculation of Mr. karthe and Mr.Mihir.

The calculation is correct.