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When calculating tds on a service bill ,TDS need to be
calclated on "Base Amount" or "Base Amount"+ "Service tax" ?
please answer with relevant provision

Question Posted / mrigankadeb

Answers were Sorted based on User's Feedback



When calculating tds on a service bill ,TDS need to be calclated on "Base Amount" or &qu..

Answer / ramesh

TDS HAS TO BE DEDUCTED ON THE INVOICE VALUE I.E BASIC + TAX
= INVOICE VALUE, ONLY TDS ON RENT YOU HAVE TO DEDUCT ON
BASIC VALUE FOR OTHERS ITS ON INVOICE VALUE.

Is This Answer Correct ?    83 Yes 11 No

When calculating tds on a service bill ,TDS need to be calclated on "Base Amount" or &qu..

Answer / sp bhadri

THERE ARE DIFFRENT VIEW ON THIS, PRACTICALLY SERVICE TAX IS
NOT AN INCOME OF SERVICE PROVIDER CAUZ HE HAS TO PAY THIS
TO GOVT.DEPTT AFTER COLLECTING IT FROM CLIENT, BUT NOW RULE
HAS COME THAT ONLY IN CASE OF RENT (SEC 194I) WE HAVE TO
DEDUCT THE TAX ON BASE VALUE ONLY.

Is This Answer Correct ?    33 Yes 1 No

When calculating tds on a service bill ,TDS need to be calclated on "Base Amount" or &qu..

Answer / chitturi.hari

TDS should be calculated on invoice amount and service tax
amount except for rent amount

Is This Answer Correct ?    25 Yes 5 No

When calculating tds on a service bill ,TDS need to be calclated on "Base Amount" or &qu..

Answer / parveen gupta makam

tds is deducted on total amount including service tax

but in case tds is deducted on rent i.e accorrding to
section 194I

in such case tds is deduted on amount (excluding service
tax)

Is This Answer Correct ?    18 Yes 3 No

When calculating tds on a service bill ,TDS need to be calclated on "Base Amount" or &qu..

Answer / niji

tds amount calculated on the above of basic amount not including servicetax amount.servicetax is an expenses not an income and it for depostied to govt a/c.so when calculate tds on service tax is double taxation

Is This Answer Correct ?    6 Yes 1 No

When calculating tds on a service bill ,TDS need to be calclated on "Base Amount" or &qu..

Answer / viswa

Tds to be deducted should be on the base amount only,
because you should not deduct tax on tax. when u r
deducting tds including service tax it will be tax on tax
resulted in double taxation

Is This Answer Correct ?    10 Yes 10 No

When calculating tds on a service bill ,TDS need to be calclated on "Base Amount" or &qu..

Answer / pardeep mittal

While calculating tds on a service bill, it is to be
calculated on base amount only. Service tax is not to be
included with base amount.

Is This Answer Correct ?    42 Yes 45 No

When calculating tds on a service bill ,TDS need to be calclated on "Base Amount" or &qu..

Answer / sanjay s. mehta

TDS SHOULD BE CALCULATED ON BASE AMOUNT ONLY i.e. EXCLUDING
SEVICE TAX;AS THE SERVICE TAX IS NOT A PART OF INCOME BUT
JUST FOR DEPOSITING TO GOVT.A/C
HENCE THE AMOUNT OF SERVICE TAX IS INCOME OF THE GOVT.
AND NOT FOR THE PARTY CONCERNED;SO THIRD PARTY TAXATION IS
NOT LIABILITY OF PARTY CONCERNED.

Is This Answer Correct ?    5 Yes 11 No

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