If contractor issued bill inclusive of service tax, on which amount tds is deductible, contract amount or total amount including SERVICE TAX ??
Say
Contract Amount : 100
ST : 12.36
Total : 112.36
12 Replies
Deepak Gupta
(CA Student)
(15922 Points)
Replied 07 May 2014
| Originally posted by : Janak | ||
 |
If contractor issued bill inclusive of service tax, on which amount tds is deductible, contract amount or total amount including TDS ?? |  |
TDS shall be deducted without including the service tax, if it's charged separately.
.
CBDT vide Circular No. 01/2014, dated 13.01.2014, has clarified that wherever in terms of the agreement/contract between the payer and the payee, the service tax component comprised in the amount payable to a resident is indicated separately, TDS shall be deducted on the amount paid/payable without including such service tax component.
CA Kumar Ajay
(Following My Dreams)
(228 Points)
Replied 08 May 2014
Please clarify what do you mean by inclusive of service tax:
Say service amount is 100/- and service tax thereon 12.36/-
then is the bill a single amount of 112.36/-
or
service charge 100/-
service tax 12.36/-
total 12.36/-
??
Harsh Saini
(IPCC)
(45 Points)
Replied 08 May 2014
TDS should be deducted on rs 100 i.e on contractor amount
sumit jain
(Ca Final Student and Article)
(71 Points)
Replied 08 May 2014
If service tax is not shown separately in the bill than deduct tds on whole amount including service tax
sumit jain
(Ca Final Student and Article)
(71 Points)
Replied 08 May 2014
Is this circular applicable for may 2014 ca final exam? ???
pawan tewari
( )
(544 Points)
Replied 08 May 2014
@ depak gupta ...
Is that notification for tds under all section or only for sec 194j.
pawan tewari
( )
(544 Points)
Replied 08 May 2014
There was one sec provision for under sec 194I and now for sec 194J and not for other tds provisions. Therefore tds will be deducted on service tax inclusive value u/s 194C
Mukesh Katara
(Account manager)
(533 Points)
Replied 08 May 2014
Pawan this provision applicable all section
b.t.malliarjunarao
(Accountant)
(68 Points)
Replied 09 May 2014
Service charges 100
Service tax 12.36
Total. 112.36
TDs -2.24
Amout to be paid 110.11
saurabh shahu
(Audit Assistant)
(142 Points)
Replied 19 July 2014
If Contractor issued Composite bill then TDS should be deduct on Gross Value of Bill.
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