LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

TDS Applicability on Service Tax portion of fees charged

Sanjay Kumar Agarwal (Project Finace) (43 Points)

16 September 2010

Dear Friennds,

Pls clarify TDS deduction to be made on income portion only or on receivable including Service Tax.

Fees Charged Rs 10 Lacs. Total receivable including Service Tax 11.03 lacs.

TDS to be deducted by Customer @ 10% will be :-

Rs 1 lac (on Fees Charged Rs 10 Lacs )

Rs 1.103 lacs (on Total receivable including Service Tax 11.03 lacs)

Any circular / Notification or reference to any case law / section, in support of selected criteria, is solicited

Thanks & Regards

SKA

Reply
Follow
Share

10 Replies

CA AYUSH AGRAWAL (Kolkata-Pune-Mumbai) (26986 Points)
Replied 16 September 2010

TDS Includes Service Tax Portion Alos.

so in UR Case 1.103

Circular Uploded Here

Attached File : 37 in tds service ta implication circular dated 28 04 2008.pdf downloaded: 980 times

sudhakar ca cwa (service) (1518 Points)
Replied 16 September 2010

TDS amount is to be deducted on total amount payable to the service provider that means inclusive of service tax,.

CA MARUTHI GANDHI (JOB) (60 Points)
Replied 16 September 2010

Except for rent (194I), in all other cases TDS is to be deducted including service Tax.

Saurabh Toshniwal (ca final) (2358 Points)
Replied 16 September 2010

Originally posted by : sudhakar ca cwa
	TDS amount is to be deducted on total amount payable to the service provider that means inclusive of service tax,.

Yashwanth Jain (Ca ) (82 Points)
Replied 16 September 2010

As per the circular uploaded by Mr.Ayush Agarwal, tds has to be deducted on any income paid under section 194I and since the service tax element paid on rent is not an income of the landlord service tax needs to be deducted only on the rent portion but this is not the case with sec 194J where tds needs to be deducted on any sum chargeable hence under sec 194J tds needs to be deducted even on the service tax portion.

Versatile....... (Chartered Accountant) (82 Points)
Replied 16 September 2010

view's given by all above guys are perfectly right...TDS should be deducted on Gross Amount i.e. on amount inclusive of service tax..

Except in case of Rent...in case of rent TDS should be deducted on Net Amount i.e. amount exclusive of service tax...refer the file atached by Ayush above...

so answer to your querry is 1.103 i.e on Gross Amount Charged.

hope your querry is solved now after so many similar view's with supporting.

Manoj BG (Tax Professional and in Service) (1795 Points)
Replied 16 September 2010

FULLY AGREED WITH CA MARUTI.

REGARDS,

MANOJ

Joey Tribbiani (fdg) (2010 Points)
Replied 17 September 2010

Originally posted by : CA MARUTHI GANDHI
	Except for rent (194I), in all other cases TDS is to be deducted including service Tax.

Santosh (Student ( Final Year - New )) (348 Points)
Replied 17 September 2010

TDS will be diductible on the amount including Service Tax Other than on Rent (194I)

CA. Divyansh Agarwal (Chartered Accountant) (732 Points)
Replied 16 November 2013

The CBDT, based upon the representations received, vide Circular No. 4/2008, dated 28/04/2008, clarified that TDS on rent is deducted u/s 194I, and as the TDS has to be deducted out of income of the recipient and service tax collection is not the income of the recipient, no TDS is required to be deducted on service tax amount.after this circular people starts to deduct tds only on income portion. However, the CBDT, vide Circular No. 275/73/2007-IT (B), dated 30-06-2008, again clarified that the clarification regarding TDS on rent u/s 194 I, will not be applicable to TDS on fees for professional and technical services; as per the provisions of section 194I, TDS has to deducted on ANY INCOME arising out of rent, whereas, as per section 194J, TDS has to be deducted on ANY SUM paid as fees for professional and technical services;so it is safe deduct tds on service tax portion incase of section 194j & section 194 c since only i nthis section word ANY SUM is used.