tds on service tax amount

This query is : Resolved

vineet (Querist)
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01 December 2009 when we deducte the tds on which amt we need to deduct inclusive of service tax or inclusive of service tax

GSTP Hari Dhayalan Konar

GSTP Hari Dhayalan Konar (Expert)
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01 December 2009 we have to deduct tds when we give credit or making payment whichever is earlier. Normally we have to deduct tds on service provided(gross) not inclusive of Service Tax.

Sunil

Sunil (Expert)
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01 December 2009 TDS is payable on 'any sum paid' and that includes service tax as service tax is an integral part of the bill / receipt. When you claim 80C for LIC or 80D for Mediclaim, you are claiming it on the Service Tax Portion also as that is the gross amount of the transaction. Therefore you have to apply TDS on the entire bill including service tax.

However, for Section 194I, service tax has been specifically excluded to be a part of the rent. In other sections this is not the case. However, if the service tax liability is on the service receiver, then TDS is applicable only on the bill of the service provider as you do not pay the service tax to the provider as in other cases.