Tds on service tax

Originally posted by : Deepak Tapse
	As per circular 1/2004 TDS to be deducted on exclusive of Service Tax where amount mentioned seperaely. Is it applicable to all sections or only for 194I and 194J

Circular No. 01/2014, is applicable for other sections as well because in Para 3 it states specifially that,
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......tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without including such service tax component.......(Extract)
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The various provisions of Chapter XVII-B requires different classes of assessees to deduct tax at source on various nature of payments.

Dear Mr.Tapse,

As per relevant circular that is applicable only applicable in case of Residential House.As per my opinion and best of my knowledge.another view is that if you are deductor then as a safer side you may deduct on inclusive amount of service tax.

My view is that if basic value of bill is Rs.1000/-, Sevice Tax @ 12.36% is Rs.124/-. TDS should be deducted on Rs.1000/- & not on Rs.1124/-.

As per Circular No.01/2014- No TDs is Deductibkle if service tax portion is separterly disclosed in invoice.

And this Circular is applicable for Entire Chapter of xvii-B (Chapter of TDS)

Can you please explain with figures?

Agreed with Mr.Mantri..

yes i agree with the above discussion