Tds

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surinder (Querist)

25 November 2014 dear all, pls tell me is tds deduct from Service tax amount? for example rent 20000+12.36%service tax=22472 tds 10% less on which amt. 20000 or 22472 thanks in advance and why on that amount

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

26 November 2014 TDS to be deducted on amount excluding service tax for all sections. 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

surinder

surinder (Querist)

04 December 2014 Thank You Very Much Sir

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