padma rangachari Started The Discussion:
pls let me know whether tds to be deducted from service tax also when it is calculated and shown separately in the cost of bill and if so, why. whether it will not amount to tax on tax and moreover tds is tax on source of income and service tax, ipso facto, is not a source of income.
It is debated issue, well your point is valid.But still we need to deduct TDS inclusive of service tax except for Rent bill ( refer CIRCULAR NO. 4/2008, DATED 28-4-2008: from CTBT states that "Service tax paid by the tenant doesn't partake the nature of income of the landlord. The landlord only acts as a collecting agency for Government for collection of service tax. Therefore it has been decided that tax deduction at source (TDS) under sections 194-I of Income-tax Act would be required to be made on the amount of rent paid/payable without including the service tax"
Dear Padma, In short You can deduct TDS on all service bills except for Rent bill where you have deduct only on basic rent value,ignore TDS on Service Tax. regards Nandha
Found This Useful? +Vote Up This Page Via Google.
Why Vote? User validation is extremely important for good content to prosper.
Disclaimer: This network and the advice provided in good faith by our members only facilitates as a direction towards the actions necessary. The advice should be validated by proper consultation with a certified professional. The network or the members providing advice cannot be held liable for any consequences, under any circumstances.
Explore Topical Knowledge Areas
Topic Categories >> Location-India-Mumbai tax deduction tax deduction at source tds on service tax Complete List Of Categories
Interesting Relevant Discussions