Tds on service tax ???
CA Yash Marda (Chartered Accountant) (214 Points)
30 May 2012CA Yash Marda (Chartered Accountant) (214 Points)
30 May 2012
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 30 May 2012
Yes Mr yash, it's true that it would amount to tax on tax, but the provision of section 194J that 'any sums paid' which means that even if ST is charged on the bill TDS shud be made on the whole bill inclusive of ST.
Only the releif is in respect of Rent paid u/s 194I.
VALLABH SONECHA
(Practicing Chartered Accountants)
(73 Points)
Replied 30 May 2012
1) Client has to deduct tds on Rs 11,236/-
2) U/S 194J tds has to be deducted on any sums paid as professional and technical fees.
Follow to link for a better clarification
https://www.simpletaxindia.net/2010/04/tds-on-professional-technical-services.html
Regards
CA Mayur Todmal
(Practicing CA)
(7756 Points)
Replied 30 May 2012
I HAVE READ THAT,
TDS HAS TO DEDUCT ON AMOUNT INCLUSIVE OF SERVICE TAX
BUT INCASE, IF PAYMENT IS FOR RENT i.e FOR SECTION 194I THEN TDS SHOULD DEDUCT ON AMOUNT EXCLUSIVE OF SERVICE TAX
Bipin.M.Patel
(F&A OFFICER)
(55 Points)
Replied 31 May 2012
TDS is required to be deducted on 11236 only , else otherwise one is not able to trace the amount one has paid during the year by way of service tax.
nandini mishra
(individual)
(592 Points)
Replied 31 May 2012
TDS is not require to deduct on service tax. yesterday when i was reading ready reckoner i found the same case. in that case it was clearly mention that TDS is not deductible on service tax as the same is not the income of the assessee the assessee is collecting TDS and depositing the same to the revenue account hence it is not require to deduct TDS on service tax portion. but i am not sure about how to present the same figure in TDS return. i will discuss this to my senior
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 31 May 2012
If you had posted the same query for rent, then every one would have opined for Rs.10000/- only but in case of Prof Fees. it is 11236/- only.
Ritesh Jain
(CA, CS in Job)
(675 Points)
Replied 31 May 2012
Yes ITDS should be on whole amount i.e any SUM paid u/s 194J....u/s 194I the amount of rent which is paid is an income to receipent i.e it si not mere any sum paid it is actully the income component which is paid but except 194C in other section when any sumis paid it is not income it is only a receipt and income component can be 20% 50% or even 90% or more...
Vikash Goel
(Director)
(21 Points)
Replied 31 May 2012
Although the TDS is deducted on the entire payment received (i.e. including Service Tax), it really doesnt mean tax on tax. Since while filing the return, the assessee will calculate the Tax based on income (and not receipt) and accordingly the TDS deducted is adjustable against the tax calculated.
So while the extra amount is blocked till filing of return, it's not really extra tax paid.
Rupesh Maheshwari
(ACA, Dip. IFR (ACCA))
(6166 Points)
Replied 31 May 2012
NO TDS on Service Tax Portion....there is a recent case law on it....
Rupesh Maheshwari
(ACA, Dip. IFR (ACCA))
(6166 Points)
Replied 31 May 2012
CBDT in circular no 4 dated 28.04.08 relating to TDS on rent u/s 194I has held that service tax is not income, it is collected as agent of GOI so income tax need not be deducted from service tax. The same principal apply in relation to other provisions relating to TDS from payments made to contractors, agents, brokers and professionals and technical person. Therefore, there is urgent need for a general circular to clarify that tax need not be deducted from element of service tax in relation to any service.
CA Dinesh Kalra
(Practising)
(31 Points)
Replied 31 May 2012
Hi,
Tds is required to be decuted on the full amount.
Dinesh Kalra