I want to know,whether it is right to deduct tax at source on the service tax component which is included in a bill.(i.e.Whether TDS to be effected on whole bill amount or excluding ST?)
22 June 2010
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.