Tds
Soumya Nair (Audit Staff) (47 Points)
04 August 2016
Is TDS deducted on actual fee or fee including Service Tax?
Shreesh Kumar
(CA Final)
(122 Points)
Replied 04 August 2016
Dear Saumya,
TDS stands for Tax Deducted at Source. Here source means source of income. You must be known with the fact that Sevice Tax can not be source of income for Deductee. Service Tax is collected by Deductee/Service Provider and then deposited to Govt.
Therefore you will only deduct TDS on sources i.e. Actual Fess without any kind of Tax.
Regards
Shreesh Kumar
CAclubindia
