Tds in case of reverse charge

This query is : Resolved

CA Abhilash Kukkadapu (Querist)
Follow

22 January 2013 Dear expert,
I have a doubt that in case of service, which is having reverse charge of service tax, whether TDS has to be deducted on the value of Invoice or the value of service plus reverce charge of service also.

Thanks.

Sumit Grover

Sumit Grover (Expert)
Follow

22 January 2013 chck the following link
https://www.caclubindia.com/forum/tds-on-service-tax-under-reverse-charge-221055.asp#.UP4m4R3qn6Y

Message likes : 1 times

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

22 January 2013 Income tax to be deducted on the invoice amount since payment / credit to the service provider is the invoice amount only.

Message likes : 1 times

CA Abhilash Kukkadapu

CA Abhilash Kukkadapu (Querist)
Follow

22 January 2013 Is the answer is same in case of partial reverse charge of service tax also?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

27 July 2025 Good question!

**TDS under Income Tax vs Service Tax Reverse Charge:**

* For **TDS (Income Tax) purposes**, you deduct TDS **only on the invoice value excluding service tax** (whether under normal or reverse charge mechanism).

* The **service tax under reverse charge** is paid by the recipient directly to the government; **this amount is not part of the payment made to the service provider**.

* So, **TDS is calculated on the amount payable to the service provider (i.e., invoice value without service tax)**.

---

**Regarding Partial Reverse Charge:**

* Even if service tax is partially under reverse charge and partially under normal charge, the TDS is **deducted only on the value of services (invoice amount excluding service tax)** paid to the service provider.

---

**Summary:**

| Scenario | TDS Deductible Amount |
| ---------------------------------- | ------------------------------------- |
| Service Tax Normal Charge | Invoice Value (excluding service tax) |
| Service Tax Full Reverse Charge | Invoice Value (excluding service tax) |
| Service Tax Partial Reverse Charge | Invoice Value (excluding service tax) |

---

If you want, I can help you draft a summary note or circular references on this topic. Need that?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now