TaxTMI 
TaxTMI 
TaxTMI 
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
TDS must include service tax on professional fees; Section 194-J applies if payment exceeds Rs. 20,000 annually. A query was raised regarding whether Tax Deducted at Source (TDS) should be applied to the service tax paid to professionals. Three responses confirmed that TDS must be deducted on the gross amount, including service tax. The replies emphasized that all taxes, including reimbursements, should be included in the TDS calculation. Additionally, it was noted that under Section 194-J of the Income Tax Act, 1961, TDS is applicable if the total payment for professional or technical services, including service tax, exceeds Rs. 20,000 in a financial year. (AI Summary)