Dear seniors,
I am newly joined with a manpower company at chennai. (i am a learner in my company)
My agency is billing to X Company for manpower provided to them. In the invoice value we are adding 10 % as Service Tax + 2% education cess on ST, + 1% on Higher Education Cess.
The client has paid to us against the invoice. And deduct 2% as TDS and paid to us remain value of the invoice.
My query
Is my company wants to pay the service tax to the government? (This was billed to that client).
And from the client side how they will get reimbursed the Tax paid amount.
And what they will do with 2 % TDS deducted from the invoice value.
Need your guidance.
Thanking you,
senthilkumaran
From India, Bangalore
1I am newly joined with a manpower company at chennai. (i am a learner in my company)
My agency is billing to X Company for manpower provided to them. In the invoice value we are adding 10 % as Service Tax + 2% education cess on ST, + 1% on Higher Education Cess.
The client has paid to us against the invoice. And deduct 2% as TDS and paid to us remain value of the invoice.
My query
Is my company wants to pay the service tax to the government? (This was billed to that client).
And from the client side how they will get reimbursed the Tax paid amount.
And what they will do with 2 % TDS deducted from the invoice value.
Need your guidance.
Thanking you,
senthilkumaran
From India, Bangalore
They will give you a TDS certificate for the TDS deducted at the financial year end. After which you can fill returns to claim it. The will submit the TDS deducted in Income tax as per the rules
From India, Mumbai
From India, Mumbai
Dear Senthilkumaran,
Service Tax: You need to register with Service Tax Department as Manpower Agency. As you have charge Service Tax in your bill u mist deposited with Governement treasury as soon as you received Payment. You alos need to file haly yearly return with Service Tax Department.
TDS : Copmany has right to dedcut TDS from your Bill. At the end of quarter / Year copmany will issue From No 16A (TDS Certificate) to you. When filing your income tax rerurn you can claim this TDS credit against your income tax liabilities or u can claim refund in case of Nil tax liabilities.
Thanks.
Jignesh
From India, Ahmadabad
Service Tax: You need to register with Service Tax Department as Manpower Agency. As you have charge Service Tax in your bill u mist deposited with Governement treasury as soon as you received Payment. You alos need to file haly yearly return with Service Tax Department.
TDS : Copmany has right to dedcut TDS from your Bill. At the end of quarter / Year copmany will issue From No 16A (TDS Certificate) to you. When filing your income tax rerurn you can claim this TDS credit against your income tax liabilities or u can claim refund in case of Nil tax liabilities.
Thanks.
Jignesh
From India, Ahmadabad
Thank you very much for your guidance.
And i heard that the service tax paid by the client against my invoice the ST value can be reimbursed from the government is it true?
With regards,
Senthilkumaran
From India, Bangalore
And i heard that the service tax paid by the client against my invoice the ST value can be reimbursed from the government is it true?
With regards,
Senthilkumaran
From India, Bangalore
Dear sirs,
Thanks you very much for the guidance
And i heard that the service tax paid by the client against my invoice the ST value can be reimbursed by the client from the government is it true? if it is true what is the formalities to be followed.
With regards,
Senthilkumaran
From India, Bangalore
Thanks you very much for the guidance
And i heard that the service tax paid by the client against my invoice the ST value can be reimbursed by the client from the government is it true? if it is true what is the formalities to be followed.
With regards,
Senthilkumaran
From India, Bangalore
Dear
Service Tax will not be re-imbursed .The collector has to deposit with Govt.Similarly the Client who has deducted TDS has to deposit it.These are issues for your/their Finance Department.Please refer it to them.
With Regards
Advocates & Notaries Legal Consultants[HR]
E-mail : rajanassociates@eth,net,
Mobile : 9025792684.
From India, Bangalore
Service Tax will not be re-imbursed .The collector has to deposit with Govt.Similarly the Client who has deducted TDS has to deposit it.These are issues for your/their Finance Department.Please refer it to them.
With Regards
Advocates & Notaries Legal Consultants[HR]
E-mail : rajanassociates@eth,net,
Mobile : 9025792684.
From India, Bangalore
Dear Senthilkumaran
First of all if you used to add service tax on your invoice you must have an servicetax registration no. and you have to paid the servicetax to the govt on quaterly basis with attached formate.
Now suppose you have collected 100/- rs as service tax from your client and you are also taking service from your vendors such as AMC etc and the vendor is also add ST on there invoice and the amount is Rs 40/- then you can take ST credit of Rs 40/- and you have to pay Rs 60/-.
TDS cirtificate are related to income tax return you can take tax rebert of IT by showing TDS cirtificate.
Sarkar.
From India, Ranchi
First of all if you used to add service tax on your invoice you must have an servicetax registration no. and you have to paid the servicetax to the govt on quaterly basis with attached formate.
Now suppose you have collected 100/- rs as service tax from your client and you are also taking service from your vendors such as AMC etc and the vendor is also add ST on there invoice and the amount is Rs 40/- then you can take ST credit of Rs 40/- and you have to pay Rs 60/-.
TDS cirtificate are related to income tax return you can take tax rebert of IT by showing TDS cirtificate.
Sarkar.
From India, Ranchi
If X company has made full payment and has only deducted TDS, you have to pay full service tax as the deduction made by X is in the nature of your tax liability which has been shifted to them by way of deduction for the same. You have received full value of invoice because even otherwise Income Tax (more the extent of TDS deducted by X) was payable by you later on. So there is no issue relating to service tax. You have to deposit what was correctly shown in your invoice to X.
From India, Jaipur
From India, Jaipur
Service Tax is chargeable on the services which are covered under Service Tax. The Service Tax is adjustable. The Service Tax one pays for availing the services of the third party, can be adjusted (set off) against the service tax collected (and required to be deposited by your company with the government) on the services rendered by your company. You deposit the net service tax with the government in a Return form in which you have to show details of Service tax Collected and Service Tax paid.
TDS is the (Income) Tax Deducted at Source. This is the responsibility of the person making payment to your company to deduct the TDS and deposit it with the Government on your behalf. You must furnish your PAN No. to the person who is deducting TDS from your bills so that the correct credit is made to your company by the tax authorities. The person who deducts the tax issues a Certificate (Form 16) to enable you to claim the same from the government. Otherwise, your tax credit will be lost. Your Company can claim the benefit of TDS towards adjustment of Income Tax payable by your company, or if no Income Yax is payable by your company, your company can claim a refund from the Income Tax Department.
From India, Chandigarh
TDS is the (Income) Tax Deducted at Source. This is the responsibility of the person making payment to your company to deduct the TDS and deposit it with the Government on your behalf. You must furnish your PAN No. to the person who is deducting TDS from your bills so that the correct credit is made to your company by the tax authorities. The person who deducts the tax issues a Certificate (Form 16) to enable you to claim the same from the government. Otherwise, your tax credit will be lost. Your Company can claim the benefit of TDS towards adjustment of Income Tax payable by your company, or if no Income Yax is payable by your company, your company can claim a refund from the Income Tax Department.
From India, Chandigarh
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TDS on service tax - CBDT clarification 13.1.2014.pdf
PT,ESIC,TDS,FBT ,S[1][1].Tax Calculator.xls