26 September 2013
Dear Sir, Please tell me about the TDS deducted on payment made to service provider on which portion of amount i.e. service or service tax or both.
26 September 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.
CAclubindia
