02 November 2007
In case of import of services where the responsibility of payment of service tax to the revenue department is of the service receiver whether TDS be deducted on amount after adding service tax amount to the bill amount or the amount billed ? In this case service provider has not included the service tax amount in the bill and CBDT circular talks about "Gross amount of bill".
Since in case of import (or any Reverse Charge Case mentioned under Rule 2(1)(d) of Service Tax Rules 2002), service tax is not charged in the invoice / bill.
Therefore TDS is deducted on Gross amount billed which does not include ST, EC or SHE Cess.
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