TDS on service tax

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Please tell me.....Why should we deduct TDS on Service Tax...????

I don't understand the concept of deducting TDS on Service Tax..

Replies (4)

Friend, I am afraid that is the law. Only in case of rent, there is no TDS on service tax component.

 

There are many things in life which we dislike but we need to balance, maintain and carry on and on.....

 

regards,

Yes. I agree with Mr majumdar's answer. I would like to add that If the organisation doesn't take input Service Tax Credit and therefore does not account it separately then the Rate at which Tax is deducted at source can be correlated easily with the total payment to the service provider and rate of TDS prescribed.. For simplification and for avoiding confusion it is like that except for 194I. 

Originally posted by : Shamik Singha
Yes. I agree with Mr majumdar's answer. I would like to add that If the organisation doesn't take input Service Tax Credit and therefore does not account it separately then the Rate at which Tax is deducted at source can be correlated easily with the total payment to the service provider and rate of TDS prescribed.. For simplification and for avoiding confusion it is like that except for 194I. 

agreed                                       

I agreed with all of you. I think  the reason for exclusion of service tax portion from rent is  that in this case no service is rendered by person while in all other cases some element of human being is involved.


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