TDS to be deducted on service tax paid to professional

[Rahul Agarwal]

Dear Sir, I wants to know that whether TDS is required to be deducted on the element of service tax paid to a professional

[Surender Gupta]

Yes, the provisions of TDS are applicable on the gross amount paid. Therefore you are required to TDS on the element of service tas paid to professionals.

[gaurav thapar]

yes, as it is clearly stated that TDS is to be deducted on gross amount, which implies that all taxes are also to be included, even the reimbursement of exps. is also liable toTDS

Yes, if the total value of amount paid/credited against professional/technicial services u/s 194-J of Income Tax Act, 1961 is excedding Rs. 20,000/- (including service tax) during a financial year TDS will be deducted.

AI Summary

TDS on gross professional fees including service tax is required when the withholding threshold for professional services is exceeded.
TDS must be deducted on the gross amount payable for professional or technical services, which includes the service tax component and reimbursements, where aggregate payments in the financial year exceed the statutory threshold for withholding under the professional services regime.