Tds applicablity under service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 May 2012 Dear expert,
On of my client is deducting Income Tax TDS u/s 194C, on payments to contractors. Whether he should also deduct Service Tax TDS?
Please advise me.

Mihir Doshi

Mihir Doshi (Expert)
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11 May 2012 TDS will be deducted on entire amount of Bill for the purpose of expenses covered u/s 194C.

For section 194I-Rent, TDS will be deducted on Rental income and not on entire bill amount that contains service tax also. Refer Circular 4/2008.

Querist : Anonymous

Querist : Anonymous (Querist)

11 May 2012 I am asking that,Whether Service Tax Act also have provision for receipient of service to deduct TDS while making payment of servise.

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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12 May 2012 TDS provisions are contained in INCOME TAX ACT.

Why should there be any provisions relating to TDS in the Act governing service tax?

Provisions relating to TDS are governed by Income Tax Act and accordingly Income Tax Act has to be followed. Any other act has nothing to do with it.

Moreover there is no Service Tax Act. Service Tax is levied under Finance Act 1994.