Service tax liability- import of service

As per Section 67 of the Finance Act, 1994,  where provision of service is for a consideration in money, service tax is chargeable on the gross amount charged by the service provider for such service rendered by him.

“gross amount charged” includes payment by cheque, credit card, deduction from account and any form of payment by issue of credit notes or debit notes and book adjustment, and any amount credited or debited,.......

Therefore, as per Sec 67 TDS if any actually  deducted from the value of taxable service will  be included in the value of service.

But since in your case , TDS has not been deducted by s.receiver rather as per contract b/w s.provider and receiver the TDS is to be borne by s.receiver.

Therefore, value of service will br Rs. 1lacs only....and the TDS borne by s.receiver shall not form part of gross amt charged , therefore not to be included in value of taxable service.