Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

Tds on service tax

Deepak Tapse (Accounts Manager - Taxation) (1771 Points)

03 April 2014

As per circular 1/2004 TDS to be deducted on exclusive of Service Tax where amount mentioned seperaely. Is it applicable to all sections or only for 194I and 194J

Reply
Follow
Share

12 Replies

Deepak Gupta (CA Student) (15922 Points)
Replied 03 April 2014

Originally posted by : Deepak Tapse
	As per circular 1/2004 TDS to be deducted on exclusive of Service Tax where amount mentioned seperaely. Is it applicable to all sections or only for 194I and 194J

Circular No. 01/2014, is applicable for other sections as well because in Para 3 it states specifially that,
.
......tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without including such service tax component.......(Extract)
.
The various provisions of Chapter XVII-B requires different classes of assessees to deduct tax at source on various nature of payments.

Hitesh Alwani (Tax Practitioner) (51 Points)
Replied 03 April 2014

Dear Mr.Tapse,

As per relevant circular that is applicable only applicable in case of Residential House.As per my opinion and best of my knowledge.another view is that if you are deductor then as a safer side you may deduct on inclusive amount of service tax.

1 Like

Thomas Lai (Others) (22 Points)
Replied 03 April 2014

Mr Alwani, there has been a clarification on this matter in November 2013. If TDS is deducted on Service Tax for non - rent services, excesses tax will be deducted.

Ravishankar (Partner) (22 Points)
Replied 03 April 2014

Tds to be deducted only on the basic fees if service tax is charged separately. This is not only for 194 i & 194 j sections but for all sections.

Raghavendra (accountant) (27 Points)
Replied 03 April 2014

I opine that, As per the circular no.01/2014, if the service tax on value of service mentioned separately in the contract entered between service provider (resident) and service receiver no need to deduct tds on service tax portion irrespective of provisions under the chapter XVII-B under chapter