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TDS

Shehtaz (student) (42 Points)

03 September 2007

whether TDS is to be deducted on an amount inclusive of service tax.

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12 Replies

Manish (Chartered Accountant) (42 Points)
Replied 03 September 2007

Yes, i am of the cosidered opinion that TDS is to be deducted on gross amount inclusive of service tax.

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Nitesh (Chartered Accountant) (340 Points)
Replied 03 September 2007

no exclusive of service tax

Late CA Sampat Jain (Chartered Accountant) (4772 Points)
Replied 03 September 2007

I agree with manish

Dinessh Kumar (Articled Asst.,) (193 Points)
Replied 03 September 2007

TDS should be deducted inclusive of service tax. bcoz while reading the section, section says that tds should be deducted on credit given to party. you are giving credit to party inclusive of service tax only. hence, tds should be deducted on gross amount only, eventhough that is not an income to the party

Sumit (Service) (55 Points)
Replied 03 September 2007

TDS should be deducted exclusive of service tax as it would be a deduction on tax itself. TAX ON TAX

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MAHENDRA IYER (SERVICE) (315 Points)
Replied 03 September 2007

Tax is required to be deducted on the Gross amount of Bill vide answer to question no. 30 of circular No. 715:215 ITR (St.) 18.

ca.Ashish goenka (profession) (92 Points)
Replied 03 September 2007

yes, tds willbe deducted on gross amt. of bill ie,(bill+service tax)

Dinessh Kumar (Articled Asst.,) (193 Points)
Replied 03 September 2007

It is not tax on tax mr.sumit. You are paying that amount to govt., instead of directly paying to the party.

madhusudan (Professional) (267 Points)
Replied 03 September 2007

There should not be any confusion regarding this matter. The TDS is on the amount of Gross amount charges. Gross amount also includes the amount of Servce Tax

(Guest)

tds should be deducted on the gross amount inclusive of service tax. Sec 194c sec. 194j speaks of any sum paid. Hence it is on gross amount.

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Sanjay Kalra (Service) (33 Points)
Replied 04 September 2007

TDS should be deducted on the amount credited to party account which include portion of Service tax also, therefore TDS should be on the gross amount inclusive of service tax.

Neeta Gupta (83 Points)
Replied 07 September 2007

Hi! tds to be deducted on bill amt.i.e.exclusive of service tax amt.As service tax is a tax which is already paid to govt. But you can also deduct tds on gross amount also.In practice some are ded.tds on gross amount for saferside and some are ded.tds on bill amt.i.e.exclusive of tds