Dear Sir,
I am receiving import of service and i have paid invoice value to service provider and tax treatment is
1. I have paid With holding tax as per schedule rates (income tax) that is my expenses. i have not issue any certificate to service provider .
2. I have paid a service tax in Reverse charge i have paid service tax only Invoice value. at the time of calculation i have not consider with holding tax amount
my practice is correct or not should i consider grossing up amount with holding tax (Income tax)
give your best opinion
Best regards
Nitin Deshmukh
Include Withholding Tax in Gross Value for Service Tax on Imported Services, Say Experts A user inquired about the correct tax treatment for importing services, specifically whether withholding tax should be included in the gross value for service tax calculation. Two respondents advised that the withholding tax, often referred to as TDS, should be included in the gross value to determine the service tax liability. They explained that if the foreign service provider had directly discharged their service tax liability, the withholding tax would have been part of the gross value. Therefore, the service recipient must consider the gross amount, including TDS, for service tax purposes. (AI Summary)
TaxTMI 
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