Tds on invoice value or base value

[Rahul Bagaria]

Is TDS to be deducted on the total invoice value (inclusive of Service Tax)or only on the base value of the invoice. Also my company deduct TDS only on the rent value and not on the total invoice value including service tax. Is there any specific provision in relation to rent?

AI Summary

Debate on TDS Application: Should Service Tax Be Excluded from Total Invoice Value Under Section 194-I? A discussion forum addresses whether Tax Deducted at Source (TDS) should be applied to the total invoice value, including Service Tax, or just the base value. A participant clarifies that under Section 194-I of the Income Tax Act, TDS on rent should exclude the Service Tax portion, as Service Tax is collected by the landlord on behalf of the government. Another participant questions why similar provisions are not applied to professional and contractual services, noting the lack of guidance from the Central Board of Direct Taxes (CBDT) on this issue. Participants express the need to adhere to existing provisions until further clarification is provided.