TDS critaria
This query is : Resolved
Pritam Singh
(Querist)
14 July 2010
if Service tax is charges TDS is applicable and sales tax/ vat etc charges no TDS
is this critaria is correct?
is this critaria is correct?
Sunil Kr. Sanganeria
(Expert)
14 July 2010
There is no such criteia. TDS may applicable in both the cases depends on the merits of the case
Pritam Singh
(Querist)
15 July 2010
whether TDS Applicable on Supply of Printed materials, Banner, Glow sign Boards, Visiting Cards, Letter Heads, Leaflets etc. if vendor charging VAT/CST
27 July 2025
Regarding your query on **TDS criteria related to service tax and sales tax/VAT**:
---
### 1. **Is TDS applicable if service tax is charged, and not if sales tax/VAT is charged?**
* **This is partially correct but needs clarity:**
* **TDS is generally deducted on the amount payable for services or contracts, which may include service tax.**
* However, **TDS is NOT deducted on sales tax or VAT/CST**, as these are taxes collected on goods and not income.
* So, if the payment is for services, TDS may apply on the entire invoice amount (including service tax) unless specific exclusions apply.
* For goods, TDS is generally **not applicable on the VAT or CST portion** of the payment.
---
### 2. **Is TDS applicable on supply of printed materials, banners, visiting cards, letterheads, leaflets, etc., if vendor charges VAT/CST?**
* **Supply of printed materials is generally considered a sale of goods**, not a service.
* Hence, **TDS is NOT applicable on such payments**, even if VAT/CST is charged.
* However, if the transaction includes some service component (like design services), TDS may apply on that part.
* For pure goods supply invoices (with VAT/CST), TDS is generally not deductible.
---
### Summary
| Nature of payment | TDS Applicable? | TDS on Tax (Service Tax / VAT) |
| ------------------------------------- | --------------------------------------------- | ------------------------------ |
| Pure Service payment with Service Tax | Yes, on total including service tax (usually) | Yes, included in TDS base |
| Sale of Goods with VAT/CST | Generally No | No TDS on VAT/CST part |
| Mixed supply (Goods + Services) | TDS applicable on service part only | No TDS on VAT/CST |
---
---
### 1. **Is TDS applicable if service tax is charged, and not if sales tax/VAT is charged?**
* **This is partially correct but needs clarity:**
* **TDS is generally deducted on the amount payable for services or contracts, which may include service tax.**
* However, **TDS is NOT deducted on sales tax or VAT/CST**, as these are taxes collected on goods and not income.
* So, if the payment is for services, TDS may apply on the entire invoice amount (including service tax) unless specific exclusions apply.
* For goods, TDS is generally **not applicable on the VAT or CST portion** of the payment.
---
### 2. **Is TDS applicable on supply of printed materials, banners, visiting cards, letterheads, leaflets, etc., if vendor charges VAT/CST?**
* **Supply of printed materials is generally considered a sale of goods**, not a service.
* Hence, **TDS is NOT applicable on such payments**, even if VAT/CST is charged.
* However, if the transaction includes some service component (like design services), TDS may apply on that part.
* For pure goods supply invoices (with VAT/CST), TDS is generally not deductible.
---
### Summary
| Nature of payment | TDS Applicable? | TDS on Tax (Service Tax / VAT) |
| ------------------------------------- | --------------------------------------------- | ------------------------------ |
| Pure Service payment with Service Tax | Yes, on total including service tax (usually) | Yes, included in TDS base |
| Sale of Goods with VAT/CST | Generally No | No TDS on VAT/CST part |
| Mixed supply (Goods + Services) | TDS applicable on service part only | No TDS on VAT/CST |
---
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