TDS on payment to foreign companies

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