DEPOSIT OF TDS & SERVICE TAX

[S.C. WADHWA]

An individual advocate furnished one bill as below:
Towards professional Exp.			200000
Towards Out of Pocket Exp.			15000
Total			215000
Please clarify on which amount tds to be deducted u/s 194J
either be Rs. 200000/- or Rs. 215000/-
Please also clarify on what amount service tax will be deposited
and at what rate by receipient of services as receipient is company.

AI Summary

TDS under Section 194J applies to the full billed amount of 215,000, including ad hoc out-of-pocket expenses. An individual sought clarification on whether TDS under section 194J should be deducted on the entire billed amount of 215,000, which includes 200,000 for professional expenses and 15,000 for out-of-pocket expenses. The response indicated that if the out-of-pocket expenses are claimed on an ad hoc basis without actual reimbursement bills, TDS should be deducted on the full amount of 215,000. Additionally, service tax should be calculated on 215,000 at 100% on a reverse charge basis, with the recipient, a company, responsible for the payment.