What is the difference between service tax and tds.is an assessee suposd to pay later even if he has paid later or vice versa?
Asked by rizwan nayeem, 11 May '07 03:03 pm
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Service Tax and TDS are two different things altogether... where service tax is a tax levied by the central government on services rendered. The services covered are listed in the clauses as mentioned in the act... however TDS is a deduction of income tax on paments made for services undertaken.... TDS is deducted on the amount of bill as per the rates defined under the income tax act.... Further, one is bound to deduct TDS on accounting of the bill/invoice itself...even though payment may not have been made... Service tax is charged on bills for services rendered....the same can be deposited after the payment is received from the party... one is not bound to deposit the amount of tax on forwarding of bill as in case of TDS above.....Answered by islamul haq, 11 May '07 03:23 pm
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