Hi Dear all Seniors,
We have hired a contractor for company production work. his monthly bill is around 4 lacs so what will be deductions from his bill.
does he wanted to have his own service tax number. If yes please tell me the procedure of resistering for service tax number.
From India, Kolhapur
3We have hired a contractor for company production work. his monthly bill is around 4 lacs so what will be deductions from his bill.
does he wanted to have his own service tax number. If yes please tell me the procedure of resistering for service tax number.
From India, Kolhapur
If the contractor turnover is more than 8 lacs, he is applicable to raise the service tax. If thee contractor invoice raised for 4 lacs, which must be sum up with 10.30%. The total amount to be paid to him after deducting 10% of income tax.
E.g: The actual amount 100.00
Service Tax 10.30
Total - 110.30
Amount to be paid = 110.30 - 11.03 = 99.27
The deducted TDS must be paid to the IT department monthly. End of the year or half yearly issue Form 16A.
From India, Delhi
E.g: The actual amount 100.00
Service Tax 10.30
Total - 110.30
Amount to be paid = 110.30 - 11.03 = 99.27
The deducted TDS must be paid to the IT department monthly. End of the year or half yearly issue Form 16A.
From India, Delhi
I don’t think TDS (I.T) on Sevice Tax. It should be on Rs.100. I am not tax expert, check. Pon
From India, Lucknow
From India, Lucknow
It will be deducted as TDS 10%. if sub vendor or job worker then 2% . on above calculation no matter if having service tax number or not. But TDS certificate should be issued in next month.
From India, Mumbai
From India, Mumbai
Can anybody able to give a clear explanation for the above issue???? which would be useful for everyone..........
From India, Tirunelveli
From India, Tirunelveli
IT is deducted after the sum with S.T, the same been crossed checked with department and they found it correct.
TDS of 2% is only applicable if it is certified from IT Dept. This is what I experienced.
The latest update is to pay Service Tax in advance i.e. simultaneously with raised invoice.
From India, Delhi
TDS of 2% is only applicable if it is certified from IT Dept. This is what I experienced.
The latest update is to pay Service Tax in advance i.e. simultaneously with raised invoice.
From India, Delhi
I dont think TDS is applicable on service tax. Some companies do deduct TDS incl of service tax. The well informed can clarify.
From India, Bangalore
From India, Bangalore
Hi
The mentioned contract is Production contract and attract TDS at 2% is contract to is a company or 1% is he is huf or individual.
and ST is inclusive only of 194I the rent payment ST should be excluded.
So deduct 2% on principle amount+ST. ST registeration and all details is the contractors headache. iF he levies ST deduct TDS along with ST amount........ if he Does not charge ST then leave it, and deduct only on the invoice amount.................. basically deduct on invoive value alone......... but make sure that his PAN No. Is mentioned on the invoice.
Regards
Narayanan
From India, Bangalore
The mentioned contract is Production contract and attract TDS at 2% is contract to is a company or 1% is he is huf or individual.
and ST is inclusive only of 194I the rent payment ST should be excluded.
So deduct 2% on principle amount+ST. ST registeration and all details is the contractors headache. iF he levies ST deduct TDS along with ST amount........ if he Does not charge ST then leave it, and deduct only on the invoice amount.................. basically deduct on invoive value alone......... but make sure that his PAN No. Is mentioned on the invoice.
Regards
Narayanan
From India, Bangalore
Hi,
You have to pay Service Tax to Contractor as he is providing you his Service Tax Number.
Pan Number and Service Tax must me mentioned on bill.
T D S must be deducted on Gross amount including Service Tax and it should be 2% if partnership or Pvt. Ltd. firm and 1% if proprietor ship company.
You have no need to registered your self in Service Tax as this compliance is for contractor as he is providing you service, so it is his responsibility to deducted the service tax.
Regards
Deepak Vig
9810437883
From India, Delhi
You have to pay Service Tax to Contractor as he is providing you his Service Tax Number.
Pan Number and Service Tax must me mentioned on bill.
T D S must be deducted on Gross amount including Service Tax and it should be 2% if partnership or Pvt. Ltd. firm and 1% if proprietor ship company.
You have no need to registered your self in Service Tax as this compliance is for contractor as he is providing you service, so it is his responsibility to deducted the service tax.
Regards
Deepak Vig
9810437883
From India, Delhi
Mr. Deepak has correctly answered the question. Only one thing I would like to add to it. The rate of TDS depends on the nature of service offered by the contractor. If the nature of service offered by the contractor involves using of his skill or intellectual, then TDS has to be deducted at 10% under section 194J. Other wise TDS will be at 1% or 2% (section 194C) depending on the status of the contractor (Deductee).
Regards
Ravindra
From India, Bangalore
Regards
Ravindra
From India, Bangalore
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Service Tax.pdf