TDS ON SERVICE TAX PORTION

This query is : Resolved

bipin.m.patel

bipin.m.patel (Querist)
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08 October 2008 As per circular issued by cbdt one do not required to deduct tds on service tax portion of invoice u/s 194I as it is not considered as income of receipient , but if the assessee get a lower deduction certificate from AO even in that case this circular hold good , means even in that case also we have to deduct tds at lower rate only on basic amount of invoice excluding service tax portion or in that case we have to deduct tds on whole amount including service tax portion???

PIYUSH JAIN

PIYUSH JAIN (Expert)
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08 October 2008 Dear Bipin,
Even in that case service tax will be excluded for deduction of TDS.
Service Tax recd by the owner is not his Income as per circular, so there is no question of deducting TDS on that amount even asseessee got lower deduction certificate.