No tds on service tax

TDS 945 views 3 replies

Dear All,

the circular on TDS on service tax component, states that whereever im terms of agreement / contract, the service tax component comprised in the amount payable to resident is indicated separately, tax shall be deducted at source under chapter XVII - B of the Act, shall be without including such serice tax component.

Some where it is mentioned that it is applicable to 194J. can anybody explain the correct position. in my opinion, this should apply to chapter XVII-B which will cover all sections including 194C?

 

pls can anybody clarify.?

 

Regards

Aniruddha Sathe 

Replies (3)

Yes you are right.. This circular covers all sections of Chapter XVII-B i.e. Sec 194C 194I, 194H and  194J etc..(nd not limited to 194J only)

Yes, its applicable to all section not cofined to 94J. But ensure that such payment made to resident in India. Therefore, if payment made under section 195 than service to be considered for TDS.

94J is mentioned due as Rajthan high court has also given verdict to not to deduct TDS like section 94I. But CBDT has expanded this benefit to all section - payment to resident


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