my question is whether to deduct TDS on amount including service tax or excluding service tax. can anyone help me?
Vivek Jarial
(Student)
(272 Points)
Replied 11 January 2010
you have to deduct TDS amount including service tax................
CA Swapnil
(job )
(1205 Points)
Replied 11 January 2010
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)
Amir
(Learner)
(4016 Points)
Replied 11 January 2010
Dear Swapnil,
As far as I know that circular which u r talking about is only for 194 I
Anand
(Chartered Accountant)
(166 Points)
Replied 17 January 2010
TDS not deduct on service tax, only in case of Rent, as per notification.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 17 January 2010
Pl post this in income tax. In my understanding ST to be excluded but disputes exist.
mazhar
(Partner in M. P. Sureka & Co. (Chartered Accountants))
(21 Points)
Replied 14 June 2011
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
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 15 June 2011
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.
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 15 June 2011
| 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.
Muhammad Rafiq
(Account assistant)
(24 Points)
Replied 01 August 2012
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
RENGARAJ R.K
(ADVOCATE)
(7557 Points)
Replied 01 August 2012
It is still a disputable point to include service tax for Income Tax TDS purpose. But the law makers/statesmen/bureacrats are always different .
Ravishankar K
(Accountant)
(461 Points)
Replied 10 November 2012
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,
DDDDDD
(.)
(176 Points)
Replied 11 November 2012
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
"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........."
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