TDS on Wrap Audit

Page no : 2

RC REDDY (profession) (36 Points)
Replied 06 January 2010

hiiiii friend i have seen your question.it invoves two questions

1.is deduction of tds including service tax?

Ans-u no  need to deduct tds  on service tax (excluding stax). service tax is not a fee for an assesse.

2.is tds r required to deduct including re-imbursments?

Ans-Reimbursement is an out of pocket expense it will not attract tds provided if he give a bill separately for reimbursement and fee for service.In other wards if he gave consolidated bill for service render including reimbursement then tds will be deduted including reimbursement.

for referanceread the case of  ito vs dr.willmar schwable india (p) ltd.


RC REDDY (profession) (36 Points)
Replied 06 January 2010

in ur case based on bill submited deduct 10% on fee  excluding service tax.


kumarsatish022 (Professional) (165 Points)
Replied 06 January 2010

Tds is to be deducted on the gross amount including Service Tax as no similar provison exist as in 194I also what need to be seen is  that Is travelling Expenidure reimburssed or Gross Amount on bill then answer is bound to change. but considering that consolidated bill is raised tds should be on gross amount thanks


sriram (CA) (281 Points)
Replied 07 January 2010

wats d purpose of conducting dis one


RC REDDY (profession) (36 Points)
Replied 07 January 2010

do u clear ur doubt still confusion let know




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