It relates to manpower services on contract,an agency providing manpower to client place on contract,when invoicing is done,service tax is included in it and submitted,while major part of the invoice amount being the salary componenet,the client deducts tds on the whole invoice amount including the service tax.I would like to know if it is correct? My question is that except for the service charges,the rest invoice amont being salary component,how is it justified that tds be deducted.also when service tax is also included in invoice,how tds is applied on service tax amount,if it is not a part of income of agency.
Appreciate experts to pls comment and simplify.
From India, Vadodara
365Appreciate experts to pls comment and simplify.
From India, Vadodara
Hi
Normally the TDS deduction to be done on the amount before the Service Tax. Since the agreed amount is a contract amount, the party is liable to deduct tax on the salary amount. You can get refund of the same by filing an IT Return, by showing you individual income/profit originally. If you want more details, pls write to me
regards
REJI
From India, Kottayam
Normally the TDS deduction to be done on the amount before the Service Tax. Since the agreed amount is a contract amount, the party is liable to deduct tax on the salary amount. You can get refund of the same by filing an IT Return, by showing you individual income/profit originally. If you want more details, pls write to me
regards
REJI
From India, Kottayam
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Responsibilitie s of person who is responsible for deduction of TDS on salary.docx
Amendment in Section 192A of the IT Act, 1961- Instructions for deduction of TDS on withdrawal f.pdf