Whether TDS on Service tax portion to be duducted

Sukhatheertha K (Student) (24 Points)

09 July 2008

Exaample

Rs 100 Consulting Charges

Rs 12.36 Service Tax

Rs 112.36 Total

Whether TDS to be deducted at Rs 100 or Rs 112.36.

Is there any notification on this??

Please let me know

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2 Replies

CA. Anubhav Jaggi (CA) (104 Points)
Replied 09 July 2008

No.

TDS on service tax portion is not to be deducted as per income tax latest circular.

for considering non deduction limit,service tax portion is to be excluded.

e.g rent=110000 + ST @ 12.36%= 13596 Total= 123596.

Overall amount is above 120000. but excuding service tax,rent amount is 110000.so TDS not to be deducted.

CA. Anubhav Jaggi (CA) (104 Points)
Replied 09 July 2008

See the circular no.- 4 dated 28/04/2008.

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