tds on service tax amount

TDS has to be on gross amount including service tax.

Dear Sirs,TDS can never be on the gross amount.The CBDT issues some circulars and we think that they are binding on the assessee,but no these circulars ,if any,are binding on the Tax Authorities.It is not the duty of CBDT to interpret the statute ,let the judiciary do it.

But........... Many  Big companies  follow what Mr Srinivasraghavan is advocating their logic is "to err on right side".To comply more than what law prescribes is yet not a crime in India so deduct as you like whether 12.36% or 36.12% till it is not below 12.36% you are right.

Hi Abhay...... TDS has to be deducted  only on the gross amount of th bill which is inclusive of Service Tax. Recently CBDT says in case of Rent, Tax can be deducted exclusive of Service Tax. TDS on Professional Charges will be inclusive of Service tax.

Hi,

An organisation has billed us Rs. 30,000 + Service Tax towards labour in a given month. We have not made payment to them for various reasons.

My question is while filing TDS returns, do I need to pay 2.26% even if I have not settled payment to our vendor.

I look forward to an answer for my question.