Service tax on Income tax deducted at source

[Mukund Honkan]

Service tax earlier to recent budget presented in Feb 2011 was payable on actual receipt from vendors. If vendor has deducted TDS but not paid balance amount, whether one should deposit services tax on TDS amount. Regards, Mukund M Honkan

AI Summary

Service Tax Applies on Gross Amount Including TDS, Even If Balance Not Received, Clarifies Respondent A query was raised about whether service tax should be paid on the amount of income tax deducted at source (TDS) when the balance amount from a vendor has not been received. A respondent clarified that service tax is applicable on the gross amount, which includes both the amount received and the TDS, as the tax has been indirectly paid by the vendor. The inquirer thanked the respondent and asked if there were any relevant case laws on the matter.