TDS on Service Tax

Page no : 2

CA Trinath Galla (student) (3130 Points)
Replied 05 November 2009

quote this..

service tax on 50,000 wil be only 5150 i.e., @ 10.3% n not 6438.

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C.A. M.Com. Suhas A. Nagpure (CA) (1175 Points)
Replied 05 November 2009

Can you plz give any ref or circular no ..................

CA Trinath Galla (student) (3130 Points)
Replied 05 November 2009

CIRCULAR NO. 4/2008, DATED 28-4-2008 og IT Act

C.A. M.Com. Suhas A. Nagpure (CA) (1175 Points)
Replied 05 November 2009

Dear Trinath,

As per that circular

tax deduction at source (TDS) under sections 194-I of Income-tax Act would be required to be made on the amount of rent paid/payable without including the service tax.

It only say's about Sec 194-I what about other Sec.?

Satish (CA Final Student) (479 Points)
Replied 05 November 2009

I agree with Suhas and the said circular talks about section 194 I only. Nobody should interprete the said circular in his/her own discretion. TDS should be deducted on gross amount including service tax in all other cases except Rent.

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CA SUDHAKAR (CHARTERED ACCOUNTANT) (189 Points)
Replied 05 November 2009

Yes, that circular is applicable only for rent and on all other payments, TDS is to be deducted on gross amount, i.e., inclusive of Service tax.

Bibhuti Bhusan Das (Financial Analyst) (144 Points)
Replied 06 November 2009

Goodmorning Everybody,

TDS only applicable if, the total Rent paid is morethan 1,20,000/- P.A., which not included Service tax. So, TDS rate will be applicable over 1,20,000/- only.

Bibhuti Bhusan Das

N.J.R (Practice) (346 Points)
Replied 06 November 2009

Refer this link

Attached File : 59 4 2008 042808 clarification on deduction of tax at source re service tax component.doc downloaded: 183 times

C.A. M.Com. Suhas A. Nagpure (CA) (1175 Points)
Replied 10 November 2009

Dear all,

I m clear about rent i.e sec 194-I. I m asking about the other sec.

(Guest)

tds is not deducted on another tax so only rentable amount is taxable not service tax

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(Guest)

tds is not deducted on another tax so only rentable amount is taxable not service tax

(Guest)

tds is not deducted on service tax

CA Trinath Galla (student) (3130 Points)
Replied 22 November 2009

Originally posted by :Sudhakar Shetty V. K.
"	Yes, that circular is applicable only for rent and on all other payments, TDS is to be deducted on gross amount, i.e., inclusive of Service tax.	"

agree.........................

Kasilinga Selvan (Article Assistant) (24 Points)
Replied 17 January 2010

If tds is deducted on entire professional charges amount inclusive of service tax what will be the accounting effect ie:how much will be the income of the service provider...if only the professional charges then dont you think the service provider is given excess credit of tds on service tax also.

please clarify iam going mad...