Tds applicability on Service Tax

[janardanan manojkumar]

is tds is applicable on Service Tax

[SPIROTECHHEATEXCHANGERS PVTLTD]

yes, TDs is applicable on Service Tax. Regds Sks

[rishi mohan]

Yes, tds is applicable on service tax. Tds is not applicable on the actual amount of invoice but on the invoice amount including service tax.

[Brijesh Verma]

I agree with the replies of the other two learned brothers. But another aspect which I would like to add is that Circular 4/2008 dated 28-04-2008 (Income Tax) has specifically mentioned that TDS has not to be deducted on Service Tax portion in case of Rental Payments. Please take note accordingly.

[DEV KUMAR KOTHARI]

Going by provisions relating to TDS ( main concerned provisions like Sections 194C, 194I, 194J) TDS is not required as it is not payment to contractor for doing work, is not rent paid to landlord , is nto fees to professional etc. These people collect service tax on behalf of GOI and has to deposit. There is diversion by way of overriding title. The sums do not fit in relevant expressions. CBDT has recognized this in case of rent, but in case of other payments CBDT ahs taken contrary, and apparently wrong decision that service tax need to be deducted on element of ST charged by contractor, professional etc. Charge of ST is based on liability to pay ST, it is nto consideration for contractors works contractor, letting out of proeprty or for doind professional work. You can illustrate it with fact that when ST rates were reduced from 12 to 10%, the amount charged in bill was accordingly reduced.Had it been oayment to contractor, landlord or professional, then there would be no such reduction. Please refer my articles on this website on this aspect for detailed discussion.

AI Summary

TDS applicability on service tax: withholding assessed on invoice including service tax, but rent exception and disputes persist.
Whether TDS applies to service tax charged by suppliers: several contributors state TDS is to be deducted on the invoice amount inclusive of service tax; Circular 4/2008 exempts deduction on the service tax element of rent; a contrary view contends service tax is collected for the government and not consideration, thus not subject to TDS, noting inconsistent CBDT stances.