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
Clarification on TDS Application: Deduct on Total Bill Excluding Service Tax Per Section 194C; 2% for Companies, 1% for Others. A participant in a discussion forum raised a query about whether tax deducted at source (TDS) should apply to the entire bill amount or only the agency commission when a company incurs marketing expenses. The bill includes reimbursements for marketing expenses and agency commission with a service tax of 12.36%. Another participant responded, advising that if the service provider charges service tax on the entire bill, TDS should be deducted on the total amount excluding the service tax, according to Section 194C, with rates of 2% for companies and 1% for others. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
