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Tds section194c query

gaurav garg (artical assistent) (26 Points)

03 June 2011

we get a bill of contract labour (including contract chages of contractor & service tax). onwhich amount tds should be deduct ?

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19 Replies

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 03 June 2011

on gross amount tds will be deducted

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Harpreet (* * * * * *) (1670 Points)
Replied 03 June 2011

TDS will be applicable on both amounts e.g. expenses + service tax

Remember one thing in case you are paying rent of immovable assets then TDS will be rent amount only. e.g. rent + service tax. TDS will be on rent amount.

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 03 June 2011

Originally posted by : future ca
	on gross amount tds will be deducted

Agreed.

SOURAV GHOSH (Assistant Manager-Finance) (401 Points)
Replied 03 June 2011

Yes..tds will be deducted on gross.. agree with future ca..

valji (Accounts manager-MBA) (2150 Points)
Replied 03 June 2011

TDS deducted on gross amt of Bill

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Gaurang (Manufacturing) (85 Points)
Replied 03 June 2011

Originally posted by : Harpreet
	TDS will be applicable on both amounts e.g. expenses + service tax Remember one thing in case you are paying rent of immovable assets then TDS will be rent amount only. e.g. rent + service tax. TDS will be on rent amount.

What if TDS is deducted on rent+service tax???

swapnil (CA Final) (598 Points)
Replied 03 June 2011

yes i agree TDS should deducted on gross amt,

provided only d exception is if TDS on rent is there, than TDS should deduted on net amt i.e without service tax amt and not on gross amt.

hv u cleared u r concept.

CA Rakesh Garg (Asst. MGR Taxation) (510 Points)
Replied 03 June 2011

TDS shall be deducted on gross amt of services/ bill.

TDS rate u/s 194C is flat 2%

1 Like

PRAKASH AGARWAL (SERVICE) (46 Points)
Replied 04 June 2011

TDS shall be deducted on Gross Amount. If recepient is individual/HUF rate of deduction shall be 1% otherwise it shall be 2%

Harpreet (* * * * * *) (1670 Points)
Replied 04 June 2011

Gaurang,

Nothing will happen if you will deduct excess tds as we all know tds on rent only applicable on rent amount not on service tax amount. at the time of filling the return of TDS, you need to show excess rent in tds software. after that may be there will be chance when you will get a notice to show cause or reason for excess rent in particular month. Thats IT. I hope you will get it.