Tds calculation

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Suresh Raghunathan (Querist)

03 April 2014 How should i calculate tds whether on invoice amount including service tax or on basis amount before service tax?

Kindly help me on different categories like profession, contract, commission if these includes service tax etc ?

C.A. Mayur J. Raiyani

C.A. Mayur J. Raiyani (Expert)

03 April 2014 if service tax is included in bill then tds is to be deducted on gross amount i.e. including service tax amount. however only in case of rent (section 194I), if service tax is included in bill then tds is to be deducted on amount excluding service tax.

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Suresh Raghunathan

Suresh Raghunathan (Querist)

04 April 2014 Dear Mayur,

I know that for rent tds amount is to be calculated on the amount before service tax but for other categories i discussed with many people they have different views they say tds to be calculated on amount before Service tax.

If you provide with any notification for IT dept it would be really helpful to resolve this confusion.

I feel that that service tax is also a tax paid to govt and tax ( tds ) on service tax is not be made as this also a tax paid to govt

C.A. Mayur J. Raiyani

C.A. Mayur J. Raiyani (Expert)

04 April 2014 there is circular no. 4/2008 of CBDT for clerification of 194I, CBDT has clerified on only one section and that is 194I that means on all other sections of TDS service tax is to be considered. in my view there is no different opinion in respect of this issue.

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