TDS on Consultancy to be provided on Contract

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    LALIT MEHTA New Member

    I am a retired Engineer (from regular service in a public limited organisation) and now having income from LIC pension, FDs, investments etc.
    I am now entering into a consultancy agreement with a local firm ion Udaipur (Rajasthan) to provide them guiadance in their Lighting business, of which I have experience and expertise.
    The contract is for initially one year.
    They will pay a limpsum amount of Rs 30,000.00 (Rs Thirty Thousand only) per month against my raising an invoice.
    Is there any service tax liability? If yes, who pays? What rate?
    Party will deduct TDS @10%. Is this adjustable with my overall income tax liability?
    My tax slab is 30%
    I have no service tax registeration nor have I done any consultancy work earlier?

    Lalit Mehta
  2. Yatin Gandhi

    Yatin Gandhi Active Member

    1. Service Tax is not applicable in this case as the total value of services expected to be provided in the year is less than 10%
    2. The TDS Deducted in this case would be adjusted against your Income Tax Liability
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