Tds on Gross Amount i.e.including service tat and Vat

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This query is : Resolved

amit jain (Querist)

03 January 2009 According to Sec 194c & 194J Tax to be deducted on "any sum paid".here "Any sum" refers to amount payable towards service rendered or works contract.but tax portion is not the considetion, person gets in turn of services rendered.so tax to be deducted on the amount including Service tax,vat or excluding these,is there any supporting Evidence to prove it.

CA Hemant T Dewani

CA Hemant T Dewani (Expert)

03 January 2009 tds is to be deducted including of service tax

Jagannathan

Jagannathan (Expert)

03 January 2009 Dear Amit,

You are correct that tax portion doesn't form part of consideration.There is a circular only for section 194I- TDS on Rent which specifically provides that no tds shall be deducted on service tax on Rent, but CBDT has not issued such circular for 194C or 194J, etc. Therefore TDS on service tax shall also be deducted on payment u/s 194C and 194J.

Jairam

Jairam (Expert)

03 January 2009 The act is not clear on whether TDS should be deducted on Basic amount or gross amt including service tax. However, in case of TDS on rent, TDS is to be deducted only on Basic Amount.A circular is issued specifically in dis regard.