tds on service tax

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Sheetal Kapoor

Sheetal Kapoor (Querist)
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15 June 2011 whether tds on an expense should be deducted including service tax or excluding service tax?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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15 June 2011 As per Circular No.4/2008 dated 28.4.2008, it was clarified that TDS on rental payments would be required to be made only on the basic rental amount without including service tax. In other words, TDS should not be made on the service tax portion of the rent. However, this analogy is not applicable to TDS under other sections.

For Sec 194I - deduct TDS on amount excluding service tax

For other sections on amount including service tax.