Service Tax on TDS in case of import of service

[ROOPSINGH MEENA]

my query is that whether the Service tax will be applicable on the TDS value in case of import of service.I have two doubts as follows:

1. whether the Service Tax applicable, if the TDS deducted from the Invoice/Bill value.

2. whether the Service Tax applicable , if the TDS is over and above the invoice/bill value and borne by the service receiver.

i request you to clarify my doubts with the supporting case laws which has been came after the deletion of Rule 7 (1) of Service Tax ( Determination of Value) Rules, 2006.

[KASTURI SETHI]

Pl. let me know the period of demand. There are so many case laws on this issue. There is also judgement of Supreme Court.

[Ganeshan Kalyani]

TDS comes under Income tax and service tax under finance act. Service is applicable whether TDS deducted or not.

[YAGAY andSUN]

We support the very view of Kasturi Sir as he is asking for period involved in this matter. Even Department has issued a circular for bringing clarification on this matter.

[KASTURI SETHI]

The querist has not bothered to post the period of demand asked for. It indicates that he is least interested in reply. This happens because of benevolent nature of TMI.

Query should be pre-paid.

AI Summary

Service tax on TDS remains chargeable for imported services; entitlement hinges on valuation period and precedent. Applicability of service tax on TDS for imported services depends on whether TDS is deducted from the invoice or paid over and above it; assessment turns on the period of demand, controlling case law since deletion of Rule 7(1), and departmental circulars, with one view stressing the separation between Income Tax (TDS) and Service Tax under the Finance Act and that service tax can be attracted irrespective of TDS deduction subject to valuation rules.