Hi,
While calculating the TDS we have not considered the service tax amount during FY 2008-09.
Now we have received our Tax audit report stating that we have not considered the service tax while calculation of TDS. Hence, now we have to pay the differential TDS i.e. TDS on Service tax amount.
for example:
Professional Services : 10000/-
Service Tax @ 10% : 1000/-
ECess @ 2% : 20/-
S&HECess @ 1% : 10/-
Total Invoice Value : (10000+1000+20+10) = 11030
We have deducted the TDS on (services) 10000/- @ 11.33% i.e. 1133/- during FY 2008-09 (Basic+surcharge+ECess)
Tax Audit Objection is.. we have to deduct the tds on total invoice value(incl.of service tax) i.e. 11.33% on i.e.11030/- instead of 10000/-
>> Now I have one doubt that actually the rule of "TDS should calculate on the invoice value including service tax" has come in force from which date? is there any circular..? then what is the effective date...?
Hope you understand the above situation. MATTER IS MOST URGENT. GIVE YOUR VALUABLE FEEDBACK to proceed further.
CAclubindia
