TDS & Service Tax on Income of a Freelancer

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  1. Santosh_k_77

    Santosh_k_77 New Member


    My name is Santosh and i am a designer. I have recently got a freelance contract for designing books for one company. I will be designing 10 books for them and they will pay me every month for the number of books i have designed for them in the same month.While billing my client is deducting 10% TDS and i would like to know two things.

    1. How can i get the TDS back?
    2. Can i charge the client service tax ?

    Please help me for these two question.

  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    1. In simple words, TDS is the tax which your client has deducted and deposited to the govt on your behalf. You can claim this at the time of filing of income tax returns.
    2. Yes, you can collect Service Tax from your client. The service tax so collected by you from your client would be required to be deposited with the Service Tax Deptt.
  3. Santosh_k_77

    Santosh_k_77 New Member

    Thank so much for you valuable advice. Do i need to mention any Service tax number in invoice? I have to submit invoice to collect my payments so how do i show them service tax?
  4. gaurav_kumar

    gaurav_kumar Well-Known Member

    Yes, you are required to mention Service Tax No. on all Invoices.

    However, I would request you to first check if Service Tax is applicable on you or not as it is applicable only on people with Sales of more than Rs. 10 Lakh. For people below Rs. 10 Lakh - it is optional.

    Moreover, this is not an income but a tax which would be required to be deposited by you with the govt. So another unnecessary compliance burden.
  5. Santosh_k_77

    Santosh_k_77 New Member

    Thank you Sir for all your help. God bless you.
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