calculation of TDS

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Narendran (Querist)
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23 August 2008 During the time of calculation of TDS, whether service tax to be consider? ( Whether service tax to be included in the payment at the time of calculation of TDS or to be excluded)

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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23 August 2008 Yes except in the case of Rent as clarified by IT department.

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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23 August 2008 Yes, Only service tax on rent has been kept out of this provision. On rest of payments, TDS is deductible inclusive of service tax.

Aman Mirza

Aman Mirza (Expert)
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23 August 2008 Yes CBDT has clarified with Circular No is 4 /2008 dated 28.4.2008 and available of site of CBDT, It clear that no TDS to be deducted on the portion of service tax on rent.