Tds on service tax

This query is : Resolved

Suraj Agarwal (Querist)
Follow

01 February 2012 Whether tds can be charged on service tax portion as in case of Sec 194 J & 194 I ??
As per circular issued by Department, I think that tds will have to charge. Please give your best opinion in this matter.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

01 February 2012 Except for 194I, income tax is to be deducted on the bill amount including service tax. Please see CIRCULAR NO. 4/2008, DATED 28-4-2008 for full details.

Message likes : 1 times

CA ASHISH GUPTA

CA ASHISH GUPTA (Expert)
Follow

01 February 2012 Actually it depends on the language used in the relevant section...section 194A,194D, 194H, 194I, 194B etc. used the word "any income", whereas 194C, 194J etc. used the word "any sum". when the word "any income" was used , TDS should not be deducted on Service tax and when the word "any sum" was used , TDS should be deducted on Service tax amount. Hopes you understand the concept.

Message likes : 1 times

Suraj Agarwal

Suraj Agarwal (Querist)
Follow

02 February 2012 thanks to all experts for quick reply. But it seems to be wrong that tds will be charged on service tax portion. Because service tax charged is not a part of income. It is only a tax burden which is finally deposited to Govt. Credit. Plz. quote any case law in this regard.

CA ASHISH GUPTA

CA ASHISH GUPTA (Expert)
Follow

02 February 2012 Under section 194J, TDS required to be deducted on service tax part.

Yogesh Agarwal

Yogesh Agarwal (Expert)
Follow

02 February 2012 There is no need to cite any case law... TDS to be deducted on gross amount if paid for other than section 194I...

Even though the service tax is not an income.

Suraj Agarwal

Suraj Agarwal (Querist)
Follow

03 February 2012 thanks to all expert penal.

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