TaxTMI 
TaxTMI 
TDS on Service Tax of Foreign Payments require to deduct or TDS require to deduct on Gross amount.
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Bhuvnesh Gupta
TDS on Service Tax section 195 require or not
29 Oct 2010 
2 Replies 
2378 Views Asked by
TDS on service tax: whether withholding applies to gross payments or may exclude grossed-up service-tax components.
Whether TDS must be deducted on payments to foreign service providers on a gross or net basis. One position holds that when payment is made on a grossing up basis the service-tax portion need not be subjected to TDS because it is not part of the invoiced bill and no TDS certificate is issued. The contrasting position maintains that TDS must be calculated on the gross amount of the payment, not after deducting service tax. (AI Summary)
Whether TDS must be deducted on payments to foreign service providers on a gross or net basis. One position holds that when payment is made on a grossing up basis the service-tax portion need not be subjected to TDS because it is not part of the invoiced bill and no TDS certificate is issued. The contrasting position maintains that TDS must be calculated on the gross amount of the payment, not after deducting service tax. (AI Summary)