Attached Circular on no TDS on Service Tax Component if shown Separately
Dear all,
Lets welcome the first circular of year 2014 introduced by CBDT.
i.e. CBDT Circular No. 01/2014 dated 13.01.14
No TDS on Service Tax Portion u/s 194J,
(TDS ON PROFESSIONAL & TECHNICAL CHARGES)
CBDT has finally decided that wherever in the terms of agreement/contract between the
service tax component comprised in the amount payable to a resident is indicated separately,
deducted at source under chapter XVII-B of the Act on the amount paid/payable without service tax component.
‘This will impact the higher cash flow towards professional fees charged from clients for rendering professional services.
This situation was earlier applicable only in case of "TDS u/s 194I.
the below enclosed working can clarify the same.
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