03 May 2013
whether the tds is to be deducted on the service tax payable by the company under reverse charge mechanism
eg: company paying service tax on Advocate fee of Rs. 1 lakh which liable to pay service tax under reverse charge mechanism, whether TDS is to be deducted on Rs. 1 lakh or Rs. 1 lakh Plus Service tax.
04 May 2013
As per Circular No.4/2008 dated 28.4.2008, it was clarified that TDS on rental payments would be required to be made only on the basic rental amount without including service tax. In other words, TDS should not be made on the service tax portion of the rent. However, this analogy is not applicable to TDS under other sections.
In short-- For 194I - Deduct TDS on amount excluding service tax. For other section - Deduct TDS on amount including service tax.
14 June 2013
Yes it is only for rental that TDS is to be deducted without including ST but in all othr cases TDS has to be deducted on both fee plus ST
CAclubindia
