Treatment of TDS on Service Tax

This query is : Resolved

CA Mayank (Querist)
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15 April 2009 Whether TDS needs to be deducted on the service tax amount for Consultancy services u/s 194J as their is no circular for this?

Jitender

Jitender (Expert)
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15 April 2009 tds need to be deducted.

C A GROUP COACHING

C A GROUP COACHING (Expert)
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15 April 2009 NO TDS ON SERVICE TAX. THERE IS A SUPREME COURT JUDGEMENT TO THIS EFFECT.

CA Mayank

CA Mayank (Querist)
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16 April 2009 Can u tell me which supreme court judgement

CA Mayank

CA Mayank (Querist)
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16 April 2009 Can u tell me which supreme court judgement

Om Prakash Singh

Om Prakash Singh (Expert)
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16 April 2009 TDS is deducted on the Amount Credited or Paid. hence Service tax is not excluded from TDS Deduction. and there is no any exception in this regard.

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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16 April 2009 clarification has been sought by Bombay Chamber & commerce & Industry regarding applicability of circular 4/2008 on section 194-J ,and asked the department that whether TDS is to be deducted on service tax collected on the service tax portion collected along with professional services.And it has been replied by the department that scope of clarification issued for section 194-I(RENT) can not be extended for section 194-J(Prof. services).

so conclusion is that
for section 194 I - TDS shall be deducted excluding of service tax as the provision contains the term " any rent" nad it is also clerified by the CBDT.

For section 194J: TDS shall be deducted including of service tax as the provision contains the term " any sum payable " and it is also clerified by the CBDT.

for all other section - TDS shall be deducted including of service tax , although it is not specifically clerified by the CBDT but because as the provision contains the term " any sum payable "

If u want i can also forward you the PDF copy of the said letter.