whether TDS should be deducted on the amt. including ST

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ashwini (Querist)

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.

THANKS

Ram Avtar Singh

Ram Avtar Singh (Expert)

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

Message likes : 1 times

CA Anand Sarda

CA Anand Sarda (Expert)

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)

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