Tds limit for contract consider service tax also

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Hi, 

I have to pay a sum Rs, 30899 for a contract. The amout before service Tax is 27500. Should I deduct TDS? Any body please advice me.

Thanks in advance.

Replies (1)

No. TDS deduction is not required if service tax has been indicated separately.
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As per Circular No. 01/2014, dated 13.01.2014, CBDT has clarified that wherever in terms of the agreement/contract between the payer and the payee, the service tax component comprised in the amount payable to resident is indicated separately, tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without including such service tax component.
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Note: I have presumed that the aggregate amount paid during the financial year has not crossed/expected to cross Rs. 75,000
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