Dear All
The provisions of section 194J states that any sum payable to a resident by way of professional fees is liable to be deducted @ 10%
Case I
Vendor charges service tax in invoice, in that case the amount is payable to vendor(i.e. resident), and the TDS shall be deducted on amount inclusive of service tax.
Case II
The service tax liability is to be borne by Service receiver(i.e. reverse charge), then the TDS shall be deducted only on the amount charged by the vendor(i.e. exclusive of service tax), since in this case, the amount of service tax is not to be paid to the vendor.
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