TDS on amount of Swachha Bharat Cess and Krishi Kalyan Cess

[Ramesh Rangani]

Hi Experts,

Please advise whether while calculating TDS on consultancy bill, amount of Swachha Bharat Cess and Krishi Kalyan Cess will also be considered.

Thanking you in anticipation...

[Ganeshan Kalyani]

Sir, TDS shall be deducted on the amount before service tax. So SBC and KKC will also have to be ignored for TDS. Thanks.

AI Summary

TDS base calculation: exclude service cesses from consultancy invoice withholding, deduct on pre-service-tax fees only.
Withholding tax on consultancy fees is to be computed on the amount before service tax; therefore, cesses that form part of service tax, specifically Swachha Bharat Cess and Krishi Kalyan Cess, are excluded from the TDS calculation on consultancy bills.