Tax deducted u/s 194c

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 March 2014 If TDS of a Trader is deducted u/s 194C even though he is not providing any kind of contractual services just selling goods to the deductor; is he liable to register as Service Tax provider

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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03 March 2014 Service tax liability is NOT determined with reference to Income Tax Act.

Service tax is applicable only if the person is providing a SERVICE.

You have to determine, whether the work performed by the person falls within the definition of service.

The fact that TDS has been deducted u/s 194C does NOT make him liable to service tax.

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