CA IN SERVICE
33 Points
Joined September 2008
TDS is require to deduct in the gross bill amount i.e. after adding service tax component. It seems that TDS is deductible in tax part also so there is tax on tax. But we are helpless because if you will refer to the provision of sec. 194 C, 194J etc. you will found that TDS is require to deduct on the total payment or total credit. We have to pay to deductee the total amount i.e. also service tax so TDS is require to deduct in Total amount of the bill. In our income tax case department has charged TDS on service tax part also.
Regards
Subhash Chandra Tiwary