Tax Deduction at source

[PRANAY DUTTA GUPTA]

Whether TDs is deductible on Service tax as charged on the Bill?

[CA.Mohammed Lakkadsha]

Yes , if the TDS is made for contract payment u/s 194C, since TDS is on gross payment made except payment made seprately for material sold. But if TDS is on rent u/s 194I the TDS is not dedcutible on service tax portion. In nutshell TDS appicability on TDS portion to be assessed on case to case basis. -

CA.Mohammed Lakkadsha

AI Summary

TDS on service tax: treat service tax as part of gross for contract payments but not for rent deductions. TDS on contract payments is imposed on the gross payment and thus encompasses service tax included in the contract consideration unless materials are separately invoiced; TDS on rent excludes the service tax portion. Determination of whether service tax is subject to TDS must be made case by case based on the payment's nature and invoicing.