Tds u/s 194c

TDS would be 1% for Ind/HUF and 2% for rest. Tax is to be deducted on the total bill amount including service tax.

Originally posted by : CA Suraj Lakhotia
	TDS would be 1% for Ind/HUF and 2% for rest. Tax is to be deducted on the total bill amount including service tax.

100% Agree with Suraj Sir.....

But won't this amount to tax on tax?

tds deducted on gross amount including servicetax.

at the rate of -

if payment made to indivisual/huf-1%

others-2%

Dear Giridhar,

It's not a tax on tax....since you get credit of Service Tax paid as Input Tax Credit.

The rate of dedcution stands at 1% for IND/HUF and 2% for others. The limit of 30,000/- for single payments or Rs. 75,000/- also applies.

Prateek