TaxTMI 
TaxTMI 
TaxTMI 
Whether TDs is deductible on Service tax as charged on the Bill?
Tax Deduction at source
PRANAY DUTTA GUPTA
TDS Applicability: Section 194C includes service tax in gross payment; Section 194I excludes it for rent payments. A query was raised regarding the deductibility of Tax Deducted at Source (TDS) on the service tax charged on a bill. The response clarified that if TDS is under section 194C for contract payments, it is applicable on the gross payment, excluding payments for materials sold separately. However, for rent payments under section 194I, TDS is not deductible on the service tax portion. The applicability of TDS on the service tax portion should be assessed on a case-by-case basis. (AI Summary)