Tds in case of reverse charge
This query is : Resolved
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.
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.
22 January 2013
chck the following link
https://www.caclubindia.com/forum/tds-on-service-tax-under-reverse-charge-221055.asp#.UP4m4R3qn6Y
https://www.caclubindia.com/forum/tds-on-service-tax-under-reverse-charge-221055.asp#.UP4m4R3qn6Y
Message likes :
1 times
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
22 January 2013
Is the answer is same in case of partial reverse charge of service tax also?
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?
**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?
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