whether tds is to be made on service tax.urgent

This query is : Resolved

PRADEEP REDDY (Querist)
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29 April 2011 hello sir,
whether tds is to be made on service tax ,for the payments made u/s 194c.can you plssss mention the circular number

CA Navin Jain

CA Navin Jain (Expert)
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29 April 2011 yes, tds would be be deducted on service tax amount under sec 194c

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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29 April 2011 There is no circular as such. The rule says... any payment made under section 194C. So any payment automatically signifies the gross amount.

The exception is only TDS on rent where TDS is to be deducted only on rent & not on service tax part.

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CA Saiyum khan

CA Saiyum khan (Expert)
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08 May 2011 If the input credit of service tax is being taken then there is not any requirement of deduction of TDS as that value would not be charged in P&L account. If no input credit is available then it is advisable to deduct tds on gross amount.