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Tds on services rendered

sangeetha (Articled Clerk) (56 Points)

03 November 2008

Dear All,

I am working in software company.We had subscribed to access the Timesjob employment portal.

The charges payable for such services is Rs.70000.00 inclusive of service tax.

Kindly clarify whether Tds is payable on the amount and if so at what rate?

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11 Replies

CA Abhash Mishra (Chartered Accountants) (598 Points)
Replied 03 November 2008

Yaa TDS will have to deducted on that payment. u have to deducted @ 2.06% on hole (including service tax), it is a contratoral situation.

Thanks

Abhash

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sangeetha (Articled Clerk) (56 Points)
Replied 03 November 2008

Thanks

Shudhanshu Agrawal (Business) (2570 Points)
Replied 03 November 2008

You also need to consider Surcharge as i think surcharge willbe applicable in the situation. So, Total rate willbe 2.267%.

Shudhanshu Agrawal (Business) (2570 Points)
Replied 03 November 2008

Originally posted by :Shudhanshu
"	Yeah the rate of TDS willbe 2.06%	"

Ramakrishna (Financial Executive) (438 Points)
Replied 03 November 2008

Dear Sudhanshu!

SURCHARGE when leviable:

Ø The amount of income tax, so computed has to be increased by a Surcharge of 10%, if the payee, lessee or license holder, happens to be a Company, Firm, and their total income exceeds Rs. 1 Crore during the financial year.

Ø In case the payee, lessee or licensee happens to be Individuals, Hindu Undivided Families, Association of Persons, Body of Individuals, if their total income exceeds Rs. 10 Lakhs then their cases are also subject to the levy of surcharge at 10%.

Ø In the case of any artificial juridical person, surcharge is recoverable on any payment made without any limits.

Ø In other cases, there is no surcharge. That means, if the payee, is a Co-operative Society or Local Authority, then no Surcharge is leviable irrespective of the amount paid.

Good Bye! Cheers!!

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sangeetha (Articled Clerk) (56 Points)
Replied 04 November 2008

Thanks for the info.

I have one more question.What is the Tds rate applicable on Amount paid to COLDCON for AMC of Air conditioners?Is it 2.06%

Devendra (Qualified Audit Assistant) (521 Points)
Replied 04 November 2008

Amount paid to COLDCON for AMC for Air conditioner will come under the purview of Section 194C and will attract TDS @ 2.06 % subject to applicability of surcharge.

sangeetha (Articled Clerk) (56 Points)
Replied 04 November 2008

Thanks Devendra

Mahesh (Accounts Executive) (20 Points)
Replied 05 November 2008

Originally posted by :sangeetha
"	Dear All, I am working in software company.We had subscribed to access the Timesjob employment portal. The charges payable for such services is Rs.70000.00 inclusive of service tax. Kindly clarify whether Tds is payable on the amount and if so at what rate?	"

Yes you have deduct TDS on the Total Charges (Including Service tax). and If you may have contract or maynot you have deduct 11.33% because it comes under consultation charges catagory.

The Times jobs is a company, ( Corporate) so you have deduct 11.33% instead of 2.06%.( this 2.06% is applicable only for individuals)

Mahesh (Accounts Executive) (20 Points)
Replied 05 November 2008

Originally posted by :sangeetha
"	Dear All, I am working in software company.We had subscribed to access the Timesjob employment portal. The charges payable for such services is Rs.70000.00 inclusive of service tax. Kindly clarify whether Tds is payable on the amount and if so at what rate?	"