Tax deducted at source, Income Tax

[ganeshan kalyani]

Dear Sir, I would like to discuss on a situation where the company has incurred marketing expenses and the service provider has raised the bills. The bill contains - a) re-imbursement of expenses incurred during marketing by arranging for road show on vehicle. b) agency commission and service tax @12.36%.

I would like to ask whether tax deducted at source applies on entire bill amount or on agency commission amount only.

regards,

ganeshan

Posts / Replies

[ganeshan kalyani]

Dear Sir, Kindly place your view on my query.

regards

ganeshan

[Ayush Goel]

Dear Ganeshan kalyani,

If service provider charge the service tax on entire bill, so you will deduct TDS on entire amount excluding service tax (TDS Deduct U/s 194C Rate of TDS U/s 194C Company-2%, Other than Company-1%)

Regards

Ayush

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