Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

TDS U/s 194C

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

Pritam saha

Pritam saha (Querist)
Follow

17 March 2011 Whether TDS U/S 194C is deductable on amount inclusive of service tax? Please provide any reference.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

17 March 2011 Yes. Income tax is to be deducted on the gross amount inclusive of service tax.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

17 March 2011 TDS will be deducted on value inclusive of service tax.
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. Which means TDS to be deducted on amount including service tax in case of other sections.

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