T.d.s. on service tax

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rajesh

rajesh (Querist)
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21 June 2014 whether tds to be deducted on service tax ?

Sandeep Dharar

Sandeep Dharar (Expert)
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21 June 2014 No TDS should b deducted exclusive of ST.

EX:-

Invoice Value - 112 (including ST)
ST - 12(say)

So TDS will b deducted on Rs 100 n not on 112.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 June 2014 The CBDT has issued Circular No. 1/2014 dated 13.01.2014 pointing out that the Rajasthan High Court has taken the view in CIT(TDS) vs. Rajashthan Urban Infrastructure that if as per the terms of the agreement between the payer and the payee, the amount of service-tax is to be paid separately and was not included in the fees for professional services or technical services, no TDS is required to be made on the service-tax component u/s 194J of the Act. Pursuant thereto, the CBDT has decided in exercise of powers u/s 119 that wherever the terms of the agreement/ contract between the payer and the payee, the service tax component comprised in the amount is indicated separately, tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without including such service tax component.

Complete notification may be seen from below link--

https://law.incometaxindia.gov.in/DIT/Circulars.aspx

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