TDS on Consultancy

This query is : Resolved

Aroop Datta (Querist)
Follow

03 December 2009 Just wanted a quick clarification.

Once deducting TDS on a Consultancy Bill will TDS get deducted including the Service Tax amount or excluding the same.

Kindly advice and thanks in advance.

CA Chandra Kishore Bajpai

CA Chandra Kishore Bajpai (Expert)
Follow

03 December 2009 It should be inclusive of service tax amount because in section 194J wording is " for paying....Any sum by way of ......."
thus whatever "sum" is being paid is liable for TDS

Shyam Lal Naik

Shyam Lal Naik (Expert)
Follow

03 December 2009 Sir,

It shall be including Service Tax.

The only exception to the above rule is service tax on "renting of immovable property", in view of specific clarification by the CBDT.

Upgrade to CAclubindia Pro. Subscribe Now!