TaxTMI 
TaxTMI 
is tds is applicable on Service Tax
Tds applicability on Service Tax
11 Jan 2010 
4 Replies 
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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. (AI Summary)
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. (AI Summary)