TDS on audit fees

joji jose (audit manager) (242 Points)

22 March 2010  

dear sirs,  our chartered accountant  had  given to our company a audit fee bill amouting to Rs. 25000 + service tax . We said them that we have to deduct TDS on the gross amount (i.e including service tax) , but said that we have to deduct TDS on 25000 only because they are  collecting and paying service tax , it was only a statutory obligation, so we are not deducted TDS on the gross amount , only for the professional charges. Is it correct. whether their argument is correct. please guide us in this case