Is tds deducted on service tax
This query is : Resolved
19 April 2013
IF A PROFESSIONAL RAISES A BILL OF A PARTICULAR AMOUNT AND CHARGES SERVICE TAX ON IT. THEN WHILE MAKING PAYMENT IS TDS DEDUCTED ON THE GROSS AMOUNT OR ON THE NET AMOUNT (INCLUDING SERVICE TAX).
19 April 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.
In short--
For 194I - Deduct TDS on amount excluding service tax.
For other section - Deduct TDS on amount including service tax.
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19 April 2013
Yes. Agree with above expert.
19 April 2013
As the Section 194I
Any person, not being an individual or a Hindu undivided family, who is responsible for paying any income by way of rent
since the word is specific about Income
but in Section 194J
Any person, not being an individual or a Hindu undivided family, who is responsible for paying any sum by way of fees for professional services
here the word is any sum paid which includes Service Tax
So the service tax is to be included while deducting TDS
Any person, not being an individual or a Hindu undivided family, who is responsible for paying any income by way of rent
since the word is specific about Income
but in Section 194J
Any person, not being an individual or a Hindu undivided family, who is responsible for paying any sum by way of fees for professional services
here the word is any sum paid which includes Service Tax
So the service tax is to be included while deducting TDS
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