TDS ON VAT & SERVICE TAX

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Sunita

Sunita (Querist)
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31 July 2009 Why do we deduct TDS on an amount including VAT & SERVICE TAX ?

Shyam Lal Naik

Shyam Lal Naik (Expert)
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02 August 2009 The income tax provisions, in most cases, says that TDS should be deducted on the amount paid/credited to the party's account.

Since VAT and / Service Tax is also paid and / or credited to the party, TDS needs to be deducted on the whole amount.

The only exception is Service tax on rental of Commercial Property, in view of specific exclusion, by way of circular.