Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 November 2011 suppose a bill for professional fees of Rs.30,000 is raised with 10.30% as service tax i.e,total bill amounts to Rs.33090/-.Now for deducting tds in this professional bill, my doubt is can i deduct 10% in 30000/- or 33090/-

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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30 November 2011 TDS will be deducted on the total bill amount including service tax.

This is so because the words used in Section 194J are "any amount paid". Amy amount paid includes the amount of service tax as well.

Had the bill been for rental, then the TDS would have been deducted on the amount excluding service tax because the words used in Section 194I are "any income" and service tax is not income of the service provider.

So TDS on professional fees will be deducted on the total bill amount.

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