Is it fair to Deduct Tax at Source while paying Service tax to the service provider as it does not constitute income to the service provider?
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TDS on service tax
Replies (5)
It's not a matter of whether it's fair to deduct TDS on service tax that is paid to the service provider b'coz since TDS also cannot be held by the one deducting it. TDS also has to be remitted to the govt. Moreover it's not us who can decide on wt amt to deduct tax, it's the govt who makes the law's.
Regards
Prasad.R
Dear Professional Colleague,
No TDS should be decuted on the Service Tax. As the same is a government payments and same has to be deposited by the service provider on its receipt. However for ease in filing of the TDS returns and to avoiding any discomforts, TDS is normally deducted on the full amount
TDS to made on all payments, which includes service tax componnet also, in my opinion
suru
Dear Sudhansu, in tax there is nothing as 'fair' or 'unfair'. What is written is law and has to be comlied with. Regarding the confusion of TDS on service tax amount, both are independent provisions and do not clash with each other in operation. Tax has to be deducted on the gross amount of the bill inclusive of serivce tax as the wording in section 194C is "any sum paid". In the context of the penal provision under section 40 a (ia) it is advisable to deduct tax on the gross amount inclusive of service tax.
we received service tax on account of Rent. & this amount of service tax we pay to govenment.
my question is, can we claim any set-off (rebate) on payable service tax?
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