TDS on bill including service tax

you have to deduct TDS amount including service tax................

194 J & 194 C TDS shall be deducted on amount inclusive of SERVICE TAX....

194 - I,D,G,H will be Exclusive of ST....( CBDT circular dated 30.06.2008)

Dear Swapnil,

As far as I know that circular which u r talking about is only for 194 I

i also think tds not deducted on service tax in case of rent only

TDS not deduct on service tax, only in case of Rent, as per notification.

Pl post this in income tax. In my understanding ST to be excluded but disputes exist.

Tds should be deducted on gross amount including service tax except in case of Rent because there is a circular issued by department not to deduct tds on service tax in case of Rent paid.........in case other it is silent.........so don't be confused and deduct tds on gross amount except in case of Rent

i Agree with swapnil

For rent , this point has been clarified. In other case, the issue is not settled. It is advisable to deduct TDS on gross payment including ST.

Originally posted by : Unnikrishnan Nair N
	For rent , this point has been clarified. In other case, the issue is not settled. It is advisable to deduct TDS on gross payment including ST.

AGREED.

my question is

1. bill amount is 7000 + Service tax 865 total bill amount is 7,865/-

and we registered under service tax

so i will deduct tds on 7,000 but i want to ask you that whether while i am paying amount to vendors

which amount should i pay i mean

7000-70 = 6930 or

7865-70 = 7795

Please reply 

It is still a disputable point to include service tax  for Income Tax TDS purpose.  But the law makers/statesmen/bureacrats are always different .

THe lawmakers have made the tax rules complicated, as per logic TDS should be deducted only on the fees and not the tax, because the person is deducting tax and paying to government, so as per his invoice only 7000 is the income earned so TDS should be deducted on 7000 only, 

In case of Section 194J (professional & technical service) TDS is to be deducted on the amount inclusive of service tax. (Refer circular 275/73/2007IT(B) dated 30-6-2008)

"Section 194J (1) states that - Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of..........." 

On the other hand In case of section 194-I TDS is to be deducted on the amount exclusive of service tax  (Refer Circular 4 dated 28-4-2008)

"Section 194I states that Any person, not being an individual or a Hindu undivided family, who is responsible for paying to ⁸⁶[a resident] any income by way of rent........."