Clarification-2

This query is : Resolved

CA Nitin Wadhwani (Querist)
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23 August 2008 author : Narendran
Posted On : 8/23/2008 8:33:16 AM
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)

Expert : S.Srinivasaraghavan
Posted On : 8/23/2008 9:23:01 AM
Yes except in the case of Rent as clarified by IT department.

Again the same point
Service Tax is "Not" to be Considered Because that not income of the person.

CA Anuj Garg

CA Anuj Garg (Expert)
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23 August 2008 Yes you are absolutely ight in your views but our gr8 CBDT thinks in other ways......thats why they hv only excluded ST on rent for TDS purpose.

and its a question of debate that when ST on rent is not the income of receipient than how ST on other services cud be treated as income.

Let see when CBDT will consider it.....

CA Nitin Wadhwani

CA Nitin Wadhwani (Querist)
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23 August 2008 Ya Bt If U Deduct TDS On Basic Amount It is The Correct Way And It Would Not lead To Any Non-followance.

Hiral Raja

Hiral Raja (Expert)
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20 November 2008 In case of making payment of rent, TDS is to be deducted only on rent component (excl service tax).

However in all other payments TDS is to be deducted on the entire bill value i.e including service tax.

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