whether TDS should be deducted on the amt. including ST

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ashwini (Querist)
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20 June 2008 Whether TDS should be calculate on the gross bill amt. (i.e. including service tax) or on the net amt. (i.e. excluding service tax).
Circulation No.4/2008 Dated 28/4/2008 clearifies only regarding to sec.194-I(i.e. TDS on rent). I desire to get ans. regarding other sec. on TDS also eg. in case of TDS on professional fees, contractor, ect.

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Ram Avtar Singh

Ram Avtar Singh (Expert)
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20 June 2008 Dear Sir
TDS will be dedutecd including service tax in other section (Gross Amount of Bill)

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CA Anand Sarda

CA Anand Sarda (Expert)
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20 June 2008 As per circular 4/2008, it has been clarified that tds should not be deducted on service tax component on rental income.
The reason given was the party paying service tax is only acting as a collecting agent for the government.

I think this reason should be applied every where. i mean all those services,where service tax is applicable, tds should be deducted only on net bill(exclusive of service tax)