Tds a service without consideration

Ramkrishna (Accountant) (325 Points)

18 June 2015  

I wonder :  TDS is income tax deduction of third party & then deposition into government account by DEDUCTOR. But the service doesnot yield any cnosideration to deductor instead he has to spend money on hiring CA or purchasing TDS SOFTWARE and then uploading fees with NSDL. NSDL charges Service Tax , means what GOVT. AGENCY is doing is service but a dedcutor is doing "Samaj seva" to government.   Correct me if I am wrong.