Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
05 July 2012Earlier we were deducting TDS on Manpower contractor's Invoice on full value i.e. inclusive of service tax. (Rs. 1000 + 124 ST = 1224/- @ 2% 25/-)
W.e.f. 01/07/2012 there are changes in Service Tax Rule, as per new rule service provider should charge 50% Service Tax -) and service receiver (Company) should pay 50% service tax . In this regard, TDS will be deducted on Rs. 1000 + 62/- = 1062/- @ 2% Rs. 21/-. Pl correct if i am worng.
Parihar Gopal
(Corporate Taxation )
(392 Points)
Replied 05 July 2012
TDS will be deducted from gross value . service tax payment by service receipent is just like a TDS Payment .
CA.Varalakshmi.M
(Manager-Finance)
(482 Points)
Replied 06 July 2012
I have the same doubt,pls clarify
Santosh V. Thakur
(Sr. Accountant)
(187 Points)
Replied 06 July 2012
Service tax payable as under :
CAclubindia
