Service tax applicability - deduction of TDS

[paresh zatakia]

Dear Sirs, If there is no service rendered as provided under the act,is service tax payable simply because payer has wrongly deducted tds u/s 194j? regards c.a.paresh zatakia

AI Summary

Service Tax Not Applicable if No Service Rendered; Finance Act Provisions Govern, Not TDS Deduction Rules. A query was raised regarding the applicability of service tax when no service is rendered, specifically questioning if service tax is payable due to the incorrect deduction of TDS under section 194J. The response clarified that the provisions of the Finance Act, 1994, which govern service tax, are independent of the Income Tax Act, 1961. Therefore, the taxability of an activity should be assessed based on the statutory provisions of the Finance Act, not on the deduction of TDS under the Income Tax Act.