this is Srikanth, i want 2 know that whether TDS on Professional Charges is to be deducted on Amount including Service Tax or Not, Plz reply
13 Replies
passion ca
(student)
(31 Points)
Replied 06 January 2009
yes, TDS has to be deducted on the Gross amount which is inclusive of Service tax.
Naveen Kumar
(Sr, Executive Finance)
(31 Points)
Replied 06 January 2009
TDS on professional services is to be deducted including service tax also. In the case of TDS on rent it is to be deducted excluding the amount of Service Tax.
Regards
Naveen Sharma
R.Suresh
(Sr. Executive)
(394 Points)
Replied 06 January 2009
You have to deducte from the gross amount.
giribabu
(Finance Controller)
(35 Points)
Replied 06 January 2009
Hai,
Please find the attachment with regard to your query. It is applicable to not only for rent, but also Professional charges.
Thanks,
Giri
Attached File : 32 clarification on tds on service tax.pdf downloaded: 206 times
Nikhil Kumar
(CA , Qualified CPA)
(910 Points)
Replied 06 January 2009
The attached file says that it is to be deducted on gross amount in the case of rent.
giribabu
(Finance Controller)
(35 Points)
Replied 06 January 2009
Hai Naveen Kumar,
Glad to meet you, Please refer the attachment with regard to TDS on Inclusive of service tax. We need to deduct TDS on Gross Amount i.e inclusive of Service Tax
Attached File : 15 clarification on tds on service tax.pdf downloaded: 191 times
CA Jithesh C
(Chartered Accountant)
(253 Points)
Replied 06 January 2009
Dear Giribabu,
Pleasr refer the circular No 4/2008, Dated 28/4/2008
Service tax paid by the tenant doesnt partake the nature of income of the landlord. The landlord only acts as a collecting agency for Government for collection of service tax. Therefore it has been decided that tax deduction at source (TDS) under sections 194-I of Income-tax Act would be required to be made on the amount of rent paid/payable without including the service tax
Kaustuv
(Practicing CA)
(1778 Points)
Replied 06 January 2009
the department clarification only talks specifically of rent(194J).. but it should be viewed as a matter of "Substance over form"..again, in absence of specific direction, to be on the safer side, TDS on professional service should be made on the Gross Amount only..
CA Jithesh C
(Chartered Accountant)
(253 Points)
Replied 06 January 2009
Please see the attached circular,
Attached File : 5 tds on rent clarification servicetax component.doc downloaded: 160 times
manish gandhi
(student)
(38 Points)
Replied 06 January 2009
TDS on professional services is to be deducted including service tax also. In the case of TDS on rent it is to be deducted excluding the amount of Service Tax
manish
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