TDS Deduction mechanism
If the service receiver has obligation to deduct TDS on the services have taken then the following method described as under:-
After full payment of the Service invoice (Tax Invoice), the service receiver deposit TDS and file their TDS return and provide us Form 16A from traces website then we will refund the TDS amount portion to the service receiver. After receiving mail from services receiver TAX Metrica provide a Refund of the TDS Amount to the service receiver
Eg. Mr. Shyam has taken services like GST Refund, and their total bill towards services is Rs. 30,000( Taxable Amount)+5,400 ( GST) Total invoice Rs. 35,400.00 has done full payment, now the question is how Mr. Has deducted TDS on that Services taken so fulfill their obligation TDS provision.
He has to deduct TDS under Section 194J 10% on Rs. 30,000/- i.e. 3,000.00, Now he will deposit this TDS amount Govt. and file TDS return after filing TDS return he has to generate Form 16A within 15Day from the filing of TDS return. After generating form 16A he will Provide it to Taxmetrica at mail with order no.
Now it is the duty of tax metrica within 7 Days of receiving mail from service receiver provides refund Rs. 3,000 to service receiver.
|If Service taken offline Normal Case||If Service taken offline Online mode Case|
|TDS Deposit by SP||–||3,000.00|
|Total Payment by SP||32,400.00||38,400.00|
|TDS Refund By Tax Metrica||3,000.00|
|NET Payment By SP||32,400.00||35,400.00|
|Total Payment Rcieved by Tax metrica||35,400.00||35,400.00||E+D|
|Note: SP. Service Provider|