TDS computation on service tax portion

Is the amount of Service tax is also considered for calculation of TDS?

What will be the situation if we are also taking the credit of service tax.

Replies (7)

in general practilce a lot of professional not deduct the TDS on service tax charged, but for safer side it is better to deduct tds on service tax this is my personal opinion.

 

Thanks

PRaveen

THERE IS TDS ON SERVICE TAX EXCEP IN THE CASE OF RENT.

AGREE AMIT. GOOD.

TDS is always deducted on the net bill amount (inclusive of any kind of tax) except in case of rent in which a notification for not inclusion of service tax has already come

Ya that's the right one.  U have 2 calculate the TDS on the Net Bill amount (inclusive of Service Tax) what you r receiving from debtors or what u r paying to the creditors.  In the act itself there is no point of exclusive of service tax in the TDS (except in case of Rent).

good i agree

Hi...

See TDS is governed by IT Act and service tax is governed by ST Act. Both have different jurisdiction and law. Whensoever you raise a bill for a taxable service, St will be included on the same. This ST is a part of consideration paid to the vendor. Thus as per IT act, U NEED TO "DEDUCT TAX ON THE AMOUNT PAID OR REMITTED TO THE ACCOUNT OF VENDOR". Thus it is very clear that u are making payment to vendor including ST. and so TDS should be on amount+ST.

Hope this will clear your doubt.

Regards

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