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Tds u/s 194c

C.M.A SHANKAR JAYAN (Probationary Officer at South Indian Bank) (140 Points)

23 June 2016

Hi, I have to make payment to a event manegment company, whether I should deduct TDS on the whole amount i.e including service tax or on the net amount i.e excluding service tax. please help

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6 Replies

Ganesh Makwana (ICWA - Inter Sr. Accounts Ex.) (247 Points)
Replied 23 June 2016

U Can Deduct TDS On Excluding Of Service Tax Because You Are Not Defaulting To Deduct TDS On Service Tax Amount.

1 Like

subhash kumar jha (PROFESSION) (445 Points)
Replied 23 June 2016

Excluding secrvice tax

1 Like

Rahul (Student CA Final ) (30 Points)
Replied 23 June 2016

TDS is deductible on the income of other party, not on tax. Therefore the service tax element shall be excluded and TDS shall be applied on the remaining amount ie. Excluding service tax

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C.M.A SHANKAR JAYAN (Probationary Officer at South Indian Bank) (140 Points)
Replied 23 June 2016

thank you guys for replying

Arun choudhary (articalship) (153 Points)
Replied 23 June 2016

TDS is deducted only on income portion hence TDS deduct excluding ST

1 Like

Tony John (Chartered Accountant) (6085 Points)
Replied 23 June 2016

Tax is to be deducted on the amount excluding service tax.

Please refer to Circular No. 1/2014 dt 13-01-2014 issued by CBDT in this regard. You may also refer to case of CIT(TDS) Jaipur vs Rajasthan Urban Infrastructure.

3 Like