TDS on Service Tax

22 May 2007
Hello Sir,

Please advice me about the following query.

In a bill for service charges the party charges service tax. We have to deduct tds against that bill. So whether the tds is to be deducted on the amount of service charge only or on the amount of bill inclusive of service tax.

Thank you
Manoj Bubna

S N KEDIA (Expert)
22 May 2007
TDS is to deducted on the amount of service charges only. Because payer has to deduct TDS on payment of any income/fees/service charges etc to the payee.

Manojbubna (Querist)
24 May 2007
Mr Kedia,

Thank you for the answer.

Can you provide me a reference from where i can get the written statement for this because i have to show proof to my boss.

Thank you
Manoj Bubna

Late CA Sampat Jain (Expert)
24 May 2007
TDS is to be made on amount including service tax

S N KEDIA (Expert)
26 May 2007
There is no written statement on your querry as there is nothing in the ACT as well as there are no reported cases on the captioned querry.
This is my personal opinion based on the language in Section 194J.
Section 194J provides that any person responsible for paying any sum by way of fees for professional or technical service shall deduct TDS.
Section put emphasis on "any sum by way of fees".In my opinion It does not include any sum other than fees.
My opinion can not be supported unless any Court cases comes.

Vivek Jain (Expert)
02 June 2007
rightly said

Sanjeev Mittal (Expert)
07 June 2007
you can refer the case law of Transmission corp. of A.P. and another vs CIT (SC) 239 ITR 587.

PR Choudahry (Expert)
10 June 2007
tds will be deduct on entire bill amount without partition of sevice charges.service tax etc.

Manojbubna (Querist)
14 June 2007
Thank you all for your help

Amit Thapar (Expert)
02 July 2007
Logically TDS should be deducted from the service charge only.But it is nowhere written that it should be so deducted. Therefor in my view whatever amount is credited to the account of the payee, TDS should be deducted on that and therefore TDS will be deducted on the total of service charge and service tax because that is the total amount credited to the account of the payee in the books of the payer.

CMA Ankur Pandey (Expert)
27 November 2009
TDS is to be charged on amount including service tax

16 July 2012
CMA Ankur sir point correct only rent will except

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