If the bill value is Rs. 2,40,000, the service tax is Rs. 24,720 (10.3% of 240,000), and the TDS is 2% of (240,000 + 29,664), amounting to Rs. 5,294.40. The total outstanding amount from the client is Rs. 2,59,425.60 (240,000 + 29,664 - 5,393.28). In this calculation, we find that the service tax to be paid is Rs. 29,664. Is this correct or not?
From India, Rajkot
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From India, Rajkot
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Hi, the invoice raised to a client is as follows:
Invoice Details
- Professional fee: INR 2,40,000/-
- Service Tax @ 10.3%: INR 24,720/-
- Total amount: INR 2,64,720
TDS is deducted at the rate of 10% on the total invoice amount, i.e., INR 26,472. This is a common practice among companies that avail these services. Based on this invoice amount, you need to pay the service tax mentioned above.
Thanks,
Sanjay
From India, Hyderabad
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4Invoice Details
- Professional fee: INR 2,40,000/-
- Service Tax @ 10.3%: INR 24,720/-
- Total amount: INR 2,64,720
TDS is deducted at the rate of 10% on the total invoice amount, i.e., INR 26,472. This is a common practice among companies that avail these services. Based on this invoice amount, you need to pay the service tax mentioned above.
Thanks,
Sanjay
From India, Hyderabad
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Thank you very much sanjay But Now also Client TDS calculating on 2% on Total Bill value , But another company deduct 1% .Would you tell me his provision and rules
From India, Rajkot
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From India, Rajkot
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Service Tax and TDS Calculation
Service tax is calculated on the invoice amount raised to the client. Some clients deduct TDS on the service provided amount but not on the total invoice amount, including the service tax. Hence, you will notice the difference in deduction from company to company.
Thanks,
Sanjay
From India, Hyderabad
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Service tax is calculated on the invoice amount raised to the client. Some clients deduct TDS on the service provided amount but not on the total invoice amount, including the service tax. Hence, you will notice the difference in deduction from company to company.
Thanks,
Sanjay
From India, Hyderabad
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I am working in a construction company. Our company builds cement plants. If our company completes a project in 5 years, we will bill monthly. We will complete 100% of the work in one month and add a 10.3% service tax. The TDS certificate will be issued to the client (cement company). The TDS certificate is calculated at 1% or 2%. The client will not pay bill-wise; they will pay in the current year or mostly the next year. According to their calculation, they provide service tax separately (10.3% of the bill value). We received the 2010-2011 bill amount through the bank, so we would pay the service tax based on the bank receipt or the service tax received (their client statement shows service tax on 6 bills added together).
If the bank receipt is Rs. 1,00,000, but the service tax against the bill value is Rs. 75,000, should we calculate the service tax based on the receipt side or the service tax received basis? Please advise.
From India, Rajkot
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If the bank receipt is Rs. 1,00,000, but the service tax against the bill value is Rs. 75,000, should we calculate the service tax based on the receipt side or the service tax received basis? Please advise.
From India, Rajkot
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Can any one provide me service tax calculation sheet with cenvat. i will greatfull to him as i will help me to understand practical situation of service tax
From India, Delhi
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From India, Delhi
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Service Tax Payment Timing
Service providers should make the payment of service tax at the time of raising the invoice to the clients or upon completion of the service. Has the service tax regulation been amended to allow the service provider to make the payment of service tax upon receipt of the payment from clients, as per the entry in the books of account or credit of the amount in the bank account? Which is correct? Please tell me.
From India, Mumbai
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Service providers should make the payment of service tax at the time of raising the invoice to the clients or upon completion of the service. Has the service tax regulation been amended to allow the service provider to make the payment of service tax upon receipt of the payment from clients, as per the entry in the books of account or credit of the amount in the bank account? Which is correct? Please tell me.
From India, Mumbai
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Service tax is paid after the amount is collected from the service receiver. Please do check SERVICE TAX PAYMENT DUE DATE FREQUENTLY ASKED QUESTIONS | SIMPLE TAX INDIA to know more about the technical details on service tax and its payment cycle dates. Hope the above link will answer most of your queries.
Regards,
Sanjay
From India, Hyderabad
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Regards,
Sanjay
From India, Hyderabad
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Dear Venkataratnam,
Service Tax is payable on the bill amount of Rs. 240,000 only. Service Tax is not payable on the Service Tax levied by you. Therefore, you should calculate the Service Tax on the bill amount of Rs. 240,000 at the appropriate rates.
Best regards
From India, Hyderabad
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Service Tax is payable on the bill amount of Rs. 240,000 only. Service Tax is not payable on the Service Tax levied by you. Therefore, you should calculate the Service Tax on the bill amount of Rs. 240,000 at the appropriate rates.
Best regards
From India, Hyderabad
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TDS on service tax - CBDT clarification 13.1.2014.pdf
PT,ESIC,TDS,FBT ,S[1][1].Tax Calculator.xls