Tds excludindg servicetax

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praveen (Querist)
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04 February 2014 Please tell me when to deduct tds on amount excluding service tax?
From January onwards tds is being deducted by our auditee on the amount excluding service tax under all sections including section 194c and 194h also. is it correct? if yes please support your answer with documentary evidence.
its urgent

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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04 February 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 (copy attached) 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.

praveen

praveen (Querist)
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04 February 2014 sir,if there in an agreement between payer and payee to pay service tax separately and not included in the bill, can we deduct deduct tds U/s194c excluding service tax?

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