Tds applicability on Service Tax

[janardanan manojkumar]

is tds is applicable on Service Tax

AI Summary

Debate on TDS Applicability: Should TDS Include Service Tax or Exclude It for Rental and Other Payments? A discussion on the applicability of Tax Deducted at Source (TDS) on Service Tax reveals differing views. Several contributors agree that TDS is applicable on the total invoice amount, including Service Tax. However, one participant highlights a circular from 2008 stating that TDS should not be deducted on the Service Tax portion for rental payments. Another contributor argues that TDS should not apply to Service Tax as it is collected on behalf of the government and not as payment for services rendered. They note that this has been recognized for rent but not for other payments.