Tds

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Trainee

Trainee (Querist)
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18 May 2014 In which cases, TDS could be deducted on the amount including service tax??

Nikhil Kaushik

Nikhil Kaushik (Expert)
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18 May 2014 as such you can deduct on TDS on service tax amount. But if you decide not to deduct TDS on service tax amount, there wont be any penalty on you.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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18 May 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--

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

Ashwani Narnoli

Ashwani Narnoli (Expert)
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18 May 2014 Agree with Sanjay sir

srinivasan

srinivasan (Expert)
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19 May 2014 When the payments are on all inclusive price or the service provider has not mentipned the seevice tax element in the invoice you have to make the TDS on gross amount

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