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tds on service tax

Bothrasunil (13 Points)

10 May 2007

Kindly let me know do i need to deduct tds on Service tax if yes why and if no why???

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7 Replies

Varun Maheshwari (28 Points)
Replied 10 May 2007

hi there,

TDS is required to deduct on any payment covered by TDS provisions eg section 194J, 194C etc. Thus if there would be a payment covered by those respective sections, it is required to deduct TDS.

As far as TDS on service tax is concerned. If a vendor has charged service tax in invoice. Gross amount of bill would be subject to TDS as per section 194C. also the same is clarified in a notification.

Regards,

Varun

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Vk Duggal (320 Points)
Replied 10 May 2007

TDS will be on the gross amount paid which will include service tax also.

Misha (13 Points)
Replied 10 May 2007

Hi frnz,

plz refer to J K Mittal service tax book. the author has deliberated on this issue with cases and has confirmed that TDS shall be deducted on the service tax amount to be on safer side.

Last but not least , though the logic says that TDS should not be deducted on any levy or income which is not earned, it should be remembered that Act is not based on logic. Recent example being levy of Service Tax on all services of CA and non levy of ST on any service of lawyer.

Hope this will help u

rgds
Misha

Manjunath (37 Points)
Replied 10 May 2007

Yuu have to deduct TDS on total amount i.e. ( service charges + service tax + education cess ) . Because tds is on gross amount credited to the parties account.

MANJUNATH - PUNE

Shaleen @Yahoocoin (88 Points)
Replied 10 May 2007

can anyone give me the notification no regarding tds on service tax m on audit were in clients r not deductin tds on service tax amt kindly help ASAP.

pls mail me at mohan.dagha21 @ gmail.com n not here plsss

Thanks in advance

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K Banerjee (13 Points)
Replied 10 May 2007

[b][/b][quote=453]Kindly let me know do i need to deduct tds on Service tax if yes why and if no why???[/quote] Is TDS payable on Service Tax amount also?