Tax deducted at source

[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

[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

9278936596

AI Summary

Tax Deducted at Source applies to the billed service amount excluding service tax when provider charges service tax.
Tax Deducted at Source applies to the billed amount (including reimbursements and agency commission) excluding the service tax component when the service provider charges service tax on the entire invoice; the guidance treats the whole taxable bill as the TDS base and notes differing deduction rates for company and non-company payees.