Suppose a bank has to make a payment of Rs.9000 to a CA firm Including Service Tax As an audit fees.I want to ask why Bank will deduct TDS on whole amount including service tax because service tax will have to be deposited by firm in full @ of 12.36%.This means TDS on service tax have to be born by the firm.
30 October 2008
Yes, TDS on Service Tax will have to be born by the firm. This issue has already been discussed many times in this expert section. TDS is deductible on the payment made inclusive of service tax.
CAclubindia
