Whether tds will be deducted..?

Professional fees is Rs.30,000 and service tax of Rs.4350 ie. Total bill of 34350 during the year.

Should TDS be deducted iu/s 194J ..??

Replies (1)

CBDT has clarified that wherever in terms of the agreement/contract between the payer and the payee, the service tax component comprised in the amount payable to a resident is indicated separately, tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without including such service tax component.

- Circular No. 01/2014, dated 13.01.2014

So, if service tax has been mentioned separately, no need to deduct TDS, as the professional fee component does not exceed Rs. 30,000.

If service tax part has not been mentioned separately, then TDS shall be deducted on the whole amount.

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