TDS u/s 194C on Service Tax

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Querist : Anonymous

Querist : Anonymous (Querist)

20 December 2010 Whether TDS on service tax can be deducted u/s 194c from the Rake handling bill of the contractor, where the party has clearly mentioned the handling chgs as well as service tax there on?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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20 December 2010 Income tax is to be deducted u/s 194C on the gross amount of the invoice including on the service tax amount.

Balakrishnan

Balakrishnan (Expert)
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21 December 2010 I remember to have read, no TDS on Service Tax. I will also refresh. Let us wait for other expert's views

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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21 December 2010 It is only of 194I. Relevant portion of the circular read as follows:-
"Therefore it has been decided that tax deduction at source (TDS) under sections 194-I of Income-tax Act would be required to be made on the amount of rent paid/payable without including the service tax".

Shyam Lal Naik

Shyam Lal Naik (Expert)
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21 December 2010 to suppliment : -

The above clarification was in respect of service tax on rent paid to landlord.

In my view, TDS is not deductible on Service tax charged for renting of land & Building only. TDS on other items falling under 194I(ie. Hiring of equipments) has to be deducted.

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