Service tax & TDS

[Asked by Guest]

Dear sir,

We are a manufacturer unit  receive a bill from service provider fabricator ( with service tax )

assy. value Rs.          50000/-

Service tax Rs.  6000/-

ed.cess                 120/-

sh.cess                   60/-

Total Rs.          56180/-

Can we deduct TDS from total value or assessable value?

[tasvir sharma]

you deduct TDS from total value.

 

Thavir Sharma

[YAGAY and SUN]

It is now settled law that TDS will be deducted on the Gross Value of the Invoice.

[Vivek Harsh]

Total value

[Rauf Momin]

 

Yes, TDS Deduct on total Invoice Value.

[K.S.AIYAR & CO.]

I am of the opinion that it should be on the value of service provided but one wrong ( in my opinion) answer given by the IT dept. under FAQ has made it a practise for everyone to deduct on total value.  The section clearly states that "...... should be deducted from amount paid towards professional/technical service ........." and service tax is not paid for professional service but is a statutory levy collected on behalf of the Govt. and no TDS should be done on that.

TDS will be deducted on total value.

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TDS filing Software

AI Summary

TDS on invoice value may be applied to gross amount including service tax, though some argue exclusion.
The question is whether TDS must be deducted on the gross invoice amount inclusive of service tax or only on the assessable value of services. The prevailing practice reported is deduction on the total invoice value, while a minority view argues exclusion of service tax as a statutory levy, asserting TDS should apply only to the value paid for the service itself.