Whether TDS on Service tax portion to be duducted

No.

TDS on service tax portion is not to be deducted as per income tax latest circular.

for considering non deduction limit,service tax portion is to be excluded.

e.g rent=110000 + ST @ 12.36%= 13596 Total= 123596.

Overall amount is above 120000. but excuding service tax,rent amount is 110000.so TDS not to be deducted.

https://law.incometaxindia.gov.in/TaxmannDit/DisplayPage/dpage1.aspx?md=1

See the circular no.- 4 dated 28/04/2008.