tds on full amt includin Service tax or excluding ST

[Asked by Guest]

Which is the better way tds on full amt including Service tax or excluding ST

[ashish chaudhary]

TDS is required to be deducted on excluding ST amount

from which date it is applicable

[Krishan Gopal]

Circular No. 1/2014 dated 13-1-2014

Gopal

AI Summary

TDS on service payments should be computed excluding service tax, in line with circular guidance on deduction base.
TDS must be computed on the amount excluding service tax; the departmental circular referenced in the discussion confirms that the service-tax component is outside the withholding base and that withholding agents should exclude service tax when calculating tax deducted at source.