Dear All,
Kindly clarify whether the TDS has to deducated on inclusive of service tax for making payment to clearing and forwarding agent.
Regds
kprabhakaran
17 Replies
Jitender
(Chartered Accountant)
(8724 Points)
Replied 17 December 2008
it is to be deducted inclusive of service tax.
Ajay B Patel
(CA Final Student)
(23 Points)
Replied 17 December 2008
As per the latest circular of IncomeTax which I read few mpnths ago, TDS should be deducted on the amount excluding ServiceTax.
Rajat Kedia ACA CS MCOM
(Assistant Manager)
(613 Points)
Replied 17 December 2008
as per the latest amendment only on rent on immovable property tds is to be deducted excluding service tax
and in other cases it is to deducted including service tax
S.Vijay Anandh
(Analyst - Finance)
(112 Points)
Replied 17 December 2008
Dear friends,
Kindly clarify below points
1. Service tax is not an income it is the liability, then how can we deduct TDS for the same.
2. If we are deducting TDS on service tax means, is it double time taxation know?.
Pls clarify the same
CA Amit Jaiswal
(Finance Manager)
(2720 Points)
Replied 17 December 2008
it was for tds on rent i.e.194i
Ravikumar.G
(Consultant)
(18525 Points)
Replied 17 December 2008
Refer CIRCULAR NO. 4/2008, DATED 28-4-2008
Sandeep
(Audit Manager)
(81 Points)
Replied 17 December 2008
As per the circular, it is clear that TDS to be deducted exclusive of service tax if the payment is relating to rent. in other cases, it is to be inclusive of service tax. refer to the circular in the following link. fn=/dittaxmann/circular/cir4_
Jyoti Malik
(ACCOUNTANT)
(2644 Points)
Replied 17 December 2008
TDS is to be deducted on gross amount (inclusive of Service Tax).
But in the case of rent TDS is to be deducted on net amount.(exclusive Service tax)
Dileep
(Finance Exective )
(23 Points)
Replied 18 December 2008
Dear All
we are hiring the vehicle on fixed rate basis per day 1500/- (80 Km , 12 hrs)
Kindly clarefy the Aplicable TDS on above subject.
Regards
Dileep
Sripada M
(CA)
(365 Points)
Replied 18 December 2008
Service Tax should be included for deducting Tax. But for rent payment, it should be excluded as per the latest circular
Gourav Goel
(Articled Trainee)
(32 Points)
Replied 18 December 2008
Deptt has clarfied that for the purpose of TDS u/s 194I rent, TDS is to be deducted on amount excluding ST. Since there is no such clarification for TDS under other sections, it can be safely implied that the payer needs to deduct TDS including ST under other sections
Sandeep
(Audit Manager)
(81 Points)
Replied 18 December 2008
Hi Dileep;
Answer for your query, The definition of Sec. 194-I, talks about rent in the normal course. it doesnot specify any clauses or explanations of charging on rate basis etc.,
in my view TDS to be deducted
Shudhanshu Agrawal
(Business)
(2570 Points)
Replied 18 December 2008
TDS willbe deducted exclusive of service tax in case of Rent (Section 194I) as per new notification and in other cases TDS willbe deducted inclusive of service tax
sri
(Software)
(83 Points)
Replied 23 December 2008
Hi
TDS to be deducted exclusive of service tax if the payment is relating to rent. in other cases, it is to be inclusive of service tax. Could you give examples for both the cases ie Rent and Other cases taking both service tax and TDS into the calculation please?
Say, if the amount of service is 1,00,000/- INR, the entry/calculation in the case of 'others', would be as follows: TDS @ 11% with E Cess 3% AND Service Tax 12.5% with E cess 3%
Vendor 88,670.00 Cr
ECS on TDS 330.00 Cr
TDS withheld 11,000.00 Cr
Expenes (services) 88,999.64 Dr
Service Tax Payable 10,679.96 Dr
Ecess on ST payable 320.40 Dr
In the case of RENT, it would be as below: TDS @ 22% with E Cess 3% AND Service Tax 12.5% with E cess 3%
Vendor 79,832.60 Cr
ECS on TDS 587.40 Cr
TDS withheld 19,580.00 Cr ((Here, do we need to calculate on 88,999.64 instead of 1,00,000)??!! Pls clarify.
Expenes (services) 88,999.64 Dr
Service Tax Payable 10,679.96 Dr
Ecess on ST payable 320.40 Dr
Thanks
Sri
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