art
141 Points
Joined February 2010
totally agreed with what Dhiraj Said
Explanation:-
The amount recieved by the service provideras service tax is not an income rather he is liable to deposit the amount collected as service tax to the credit of central government within prescribed time lmit.
so the amount of service tax paid by reciever of service is indirectly paid to central government and according to section 196 tax shall not be deducted on any amount payable to government.
hence in the above case tds should be deducted only on the amount of rent and not on othe amount of service tax.