TDS is deducted on gross amount icluding service tax charged in the bill.i.e tax on tax which appears unfair.Since service tax is not an income whether deduction of TDS on service tax amount is legal?
M.M.JOHN (SERVICE) 03 July 2008
TDS is deducted on gross amount icluding service tax charged in the bill.i.e tax on tax which appears unfair.Since service tax is not an income whether deduction of TDS on service tax amount is legal?
Guest (n/a) 03 July 2008
TDS canot be deducted from the Service Tax.
Reason :
Direct Tax Circular No. 4 dated 28 April 2008 |
The CBDT decided that the 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. Further, the service tax paid by the tenant would not be considered as income of the landlord, hence, the tax was deductible at source on income by way of rent paid to any resident. |
Guest (n/a) 04 July 2008
the circular of cbdt is saying only about service tax on rent....whether it is applicable to all the services.....
Guest (n/a) 04 July 2008
whether the TDS sholud deduct the service tax include is it possible to duduct ther TDS
kirti (Accountant) 19 July 2008
before last two years everybody was deducting TDS on basic amount of charges which is exclude from service tax.
but as per my knowledge rule is changed. Now everybody deducting TDS on Basic + Service tax amount. It seems unfair.
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