Giridhar S Karandikar (Team Lead) (7548 Points)
02 February 2012If an entitity makes payment towards professional fees or any other payment towards services received & the threshld for making TDS is crossed, then does the payer is required to deduct tax only on the net amount before service tax charged by teh service provider or on the gross amount inclusive of ST. Also if teh threshols is crosed because of charging Service tax, then also TDS is required to be made or not?
Will this not amount to Tax on Tax
Regit
(CA.Final)
(320 Points)
Replied 02 February 2012
1.For profesisonal services, TDS is to be deducted on Service tax also. However, this is different in case of TDS on Rent, where tax should be deducted excluding Service Tax. [ F.No: 275/73/2007-IT(B), dated 30.06.08
2.Threshold limit means, Aggregate of Amount of bills raised. So it includes Service Tax also.
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