rajesh (Accountant) (583 Points)
17 May 2011Dear Sir
An Assessee amount paid to his sub-contractor and also paid service tax at this stage assessee is deduct TDS on (Contract Amount) or (Contract amount+Service TAx) i.e. tds deduct u/s 194C is Including Service Tax or Excluding Service TAx. please help me its urgent.
Thanks in advance
Deepak Gupta
(CA Student)
(15922 Points)
Replied 17 May 2011
| Originally posted by : rajesh | ||
 |
Dear Sir An Assessee amount paid to his sub-contractor and also paid service tax at this stage assessee is deduct TDS on (Contract Amount) or (Contract amount+Service TAx) i.e. tds deduct u/s 194C is Including Service Tax or Excluding Service TAx. please help me its urgent. Thanks in advance |
 |
In respect of payments u/s 194C TDS has to be made on payment inclusive of service tax.
vishal kedia
(finance mananger)
(22 Points)
Replied 17 May 2011
TDS on Contract is liable for deduction on whole amount including Service Tax.
TDS on Rent U/S 194I is liable for deduction on basic amount only, while TDS under other sections like 194C & 194J are liable for deduction on basic amount and on the applicable service tax levied.
KIYOSH
(TAX CONSULTANT)
(332 Points)
Replied 17 May 2011
TDS to be deducted on contract + service tax
C.Balaji
(Learner)
(1867 Points)
Replied 17 May 2011
Agree with above... TDS is applicable on whole amount including Service Tax.
Shivaram Krishnan
(Partner)
(50 Points)
Replied 17 May 2011
What if the amount includes Sales Tax/VAT ?
Adityakumarhv
(CA Final)
(45 Points)
Replied 17 May 2011
For Sec 194 C inclusive of service Tax And Only For 194 I TDS to be calculated ECLUSIVE of service tax
vishal kedia
(finance mananger)
(22 Points)
Replied 17 May 2011
TDS is to be deducted on the whole amount including of Service Tax, Sales Tax / VAT under section 194C
Gaurav
(CA Final)
(44 Points)
Replied 18 May 2011
As per Circular no. 4/2008. tds is required to be deducted on the amount exclusive of service tax in case of of rent in all other cases service tax is to be included in the gross amount charged.
CA Biswaranjan
(job)
(149 Points)
Replied 18 May 2011
tds is deductible on whole amount including service tax except tax deductible u/s 194i
Durga Datta Dash
(CA Final Student)
(76 Points)
Replied 18 May 2011
Hi All
U All have to go through the law language,Circular is nothing only to clarify certain thing while it is not able to put the Law language in right place.
In 194-C the language written as Paying Any SUM-(Meanes Including Service Tax)TDS Including S.T
In 194-I the language says Any INCOME (Means excluding Service Tax)TDS Excluding S.T
So whenever in TDS section the important word in whether INCOME OR SUM
Hope it would beneficial to all
CA Aditya Goel
(Chartered Accountant)
(368 Points)
Replied 23 May 2011
all are corrrect. Rent pe exclude service tax and on rest charge tds on gross amount.
CA Aditya Goel
(Chartered Accountant)
(368 Points)
Replied 23 May 2011
in case of VAT bill. no TDS to be deducted. as it is purchase and TDs is not deducted on purchase.
CAclubindia
