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194J

CA SUBBIAH K (SENIOR MANAGER - F&A) (105 Points)

10 August 2008

Explain whether the TDS to be deducted on the amount including service tax or on excluding service tax?

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8 Replies

Ram Avtar Singh (Nagari Sultanpur U.P.Delhi) (14497 Points)
Replied 10 August 2008

TDS to be deducted excluding service tax

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Shrruti (Student) (25 Points)
Replied 10 August 2008

Hi Subbiah,

TDS is always deducted on the amount including service tax. If the gross income received is Rs.10,000 then service tax on that would be Rs 1,236 @ 12.36%. Hence TDS will be deducted on the total amount of Rs. 11,236/- (Rs 10,000 + Rs 1,236)

CA Nitin Wadhwani (Chartered Accountant) (4469 Points)
Replied 10 August 2008

TDS is To Be Deducted On Basic Amount Since That What Is the Income of the person and not the service tax amount.

also there is circular of cbdt in this regd

i would rather ask ms.shruti to check into the law

M.Sriram Shenoy (CA Final) (814 Points)
Replied 11 August 2008

TDS should be deducted on the total amount i-e gross amount + service tax amount. only incase of rent, tds can be deducted on amount excluding service tax.

jinesh (CA Articleship) (22 Points)
Replied 11 August 2008

TDS always deducting including servicetax. But in the case of rent TSD on the amount excluding service tax

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jatinderkumar (Trainee) (32 Points)
Replied 11 August 2008

Dear Mr. SUBBIAHK

it is absolutely right that TDS wil always be deducted on gross amount i.e including the amount of service tax EXCEPT in one case i.e in case of RENT as circullar has been issued by the CBDT in such case..

in case of TDS oin rent is always deducted on net amount i.e excluding the amount of service tax.

CA SUBBIAH K (SENIOR MANAGER - F&A) (105 Points)
Replied 12 August 2008

Originally posted by :nitin wadhwani
"	TDS is To Be Deducted On Basic Amount Since That What Is the Income of the person and not the service tax amount. also there is circular of cbdt in this regd i would rather ask ms.shruti to check into the law	"

Hi.. Nitin

Can you please give the circular number before advised to madam Sruti

CA SUBBIAH K (SENIOR MANAGER - F&A) (105 Points)
Replied 12 August 2008

Originally posted by :nitin wadhwani
"	TDS is To Be Deducted On Basic Amount Since That What Is the Income of the person and not the service tax amount. also there is circular of cbdt in this regd i would rather ask ms.shruti to check into the law	"