TDS on payment to foreign companies

 

In case of Foreign companies service tax liability is on service receiver.
 
Please advice while deducting Tax @ 20% or other rate service tax portion shall be added or not
Replies (2)

TDS is not deducted on a statutory liability irrespective of whom the payment is being made to .....

You have to deduct  Tds on inclusive of service tax 


Update:05.07.2008:A clarification regarding applicability of circular 4/2008 has been issued by the dept to bombay chamber of commerce and clarified that section 194 J is not covered under circular 4/2008 .hence tds should be deducted on service tax under section 194J(professional fees)

As per my consideration it is applicable for u/s 195 

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