CA Himanshu Munot (Professional consultant) (106 Points)
29 July 2014As per CBDT Circular No -01 /2014
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 29 July 2014
Where under chapter VII B it says that we need to deduct tds on service tax debited to p n l?
1/2014 is applicable to every1 and no tds is deductible on the servcie part of the transaction.
Manoj Sadaria
(Practicing Professional)
(253 Points)
Replied 30 July 2014
AS PER CIRCULAR NO 01/2014 DATED: 13- JAN-2014
No TDS is required to be made on the service tax component, if the same is indicated separately.
Case law for no deduction of TDS on the Service Tax Component under section 194J of the Income Tax Act, 1961
The judgment of the Hon'ble Rajasthan High Court dated 1-7-2013, in the case of CIT (TDS) Jaipur v. Rajasthan Urban Infrastructure (Income-tax Appeal No.235, 222, 238 and 239/2011), holding that if as per the terms of the agreement between the payer and the payee, the amount of service tax is to be paid separately and was not included in the fees for professional services or technical services, no TDS is required to be made on the service tax component u/s 194J of the Act.
Decision of the Board
The Board has decided 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, tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without including such service tax component.
Following section also covered by the circular
Following points/conditions should be noted given under in new circular 01/2014 dated 13.01.14 to get exemption on TDS on service Tax
If both the above conditions are satisfied then no need to deduct TDS on service tax part.
Regards
Manoj Sadaria
LIVE Form 10 B and Form 10BB: Handle Tax Audit Reports of Charitable Organizations(with recording)
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