Dear Friends, I would like to inform you that TDS is not deducted on what one "supposes". The deduction is to be made as per the various sections under Income Tax Act, 1961. For example please read sec 194J(1). I give the extract as under:
PART-I 15<http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2008ITAct/ftn15section194h.htm> [*Fees for professional or technical services.*16<http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2008ITAct/ftn16section194h.htm> 17<http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2008ITAct/ftn17section194h.htm> *194J.* (1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of (a) fees for professional services, or (b) fees for technical services, 18<http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2008ITAct/ftn18section194h.htm> [or]** 18<http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2008ITAct/ftn18section194h.htm> [(c) royalty, or (d) any sum referred to in clause (va) of section 28<http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2008ITAct/section28.htm> ,] shall, at the time of credit of such sum to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, PART-II deduct an amount equal to 19<http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2008ITAct/ftn19section194h.htm>[ten] per cent of such sum as income-tax on income comprised therein : ..... Part-I says when the TDS is to be deducted. Part-II says on which amount the TDS is to be deducted. I am sure we all know what is the meaning of the term "income comprised" used in the second part. A ridiculous circular issued by some dept official, I am afraid will hold no water when put to test on court of law. How ever, to avoid unwanted confrontation with the tax officials and as the deductor has nothing to lose, he simply deducts on the total payment. Poor deductee has to suffer on locked up funds and spending money to get his own funds!!!!!!! sivaraman On Wed, Nov 26, 2008 at 10:21 AM, Kiran Takke <[email protected]> wrote: > yeah > > u r supposed to deduct the tds on total amount including service tax for > all the service providers other than service charge on rent. Service tax on > rent id only excluded from the tds purview. > > Thanks & Regards, > Kiran Takke > > > On Wed, Nov 26, 2008 at 10:26 AM, Bharat Salian < > [email protected]> wrote: > >> Dear Friends, >> >> >> >> Good Morning……. >> >> >> >> A small query on TDS, request you please clarify. >> >> >> >> As on date we used to deduct the TDS on net amount i.e. excluding Service >> Tax for all service providers. Can anyone URGENTLY tell me if there is any >> issue? >> >> >> >> Thank you, >> >> >> >> Best regards, >> >> >> >> Bharat Salian >> >> P* **Please don't print this e-mail unless you really need to.* >> >> >> >> >> > > > > --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Skorydov MyTaxAssistant Member Group" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/SkorydovMyTaxAssistant?hl=en -~----------~----~----~----~------~----~------~--~---
