Regarding Deduction of TDS

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 December 2010 HI

My client is paying commission to retailers.
They are required to pay service tax on commission and also deduct TDS on commission.

So TDS will be deducted only on commission amount or Commission + ST amount?

CA Sanat Pyne

CA Sanat Pyne (Expert)
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15 December 2010 Service tax is collected on behalf of government, as per provisions relating to service tax, it is diverted at source and does not accrue as income of recepient.Therefore, service tax is not a charge, consideration or fees etc. for services rendered.Therefore, income tax should not be deducted from the element of service tax. Even otherwise the amount of service tax is not consideration for any contract, it is not rent of property let out, it is not commission or brokerage, it is not any 'fees' of professional or technical person. Unfortunately CBDT have taken stands in relation to rent and other payments differently and in contradictory manner. In case of rent it is considered by CBDT that landlord collect it on behalf of government therefore tax need not be deducted, however, in case of other payments, stand taken is that tax should be deducted even on Service tax amount.

Querist : Anonymous

Querist : Anonymous (Querist)

15 December 2010 Thanks Sanat.

Your reply will help me alot.

Even I am a C.A working as a consultant for Infy.

So do remain in touch through my mail id.

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