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Service tax on brokerage for which tds deducted 194h

Queries 862 views 2 replies

We were deducted TDS of 10% on commission under 194H. 

We have doubt whether we have to pay Service Tax for the Brokerage Amount for which TDS is deducted.

Kindly anyone Help Us with this issue. Its really urgent

Replies (2)

Service tax is paid on the bill amount, before TDS deduction.

Its service provider's responsibility to charge Service Tax (unless RCM).

ITD has clarified that TDS is not to be deducted on Service tax element if such amount is separately mentioned in invoice.
Here your question is on whether service tax is leviable on brokerage amount for which TDS already deducted?
Answer is, practically service tax is paid on the Invoice value and it is service provider's liability to charge and pay service tax to government assuming reverse charge not applicable in your case.
Both income tax and service tax are different levies under different statutes. Charging of tax under one statute does not exempts a person from levy of tax under different statute.


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