Service tax & TDS

[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 andSUN]

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.

[Guest]

TDS will be deducted on total value.

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TDS filing Software

AI Summary

Dispute Over TDS Deduction: Should It Apply to Total Invoice or Exclude Service Tax? A manufacturer received a bill from a service provider, including service tax, and inquired whether TDS should be deducted from the total or assessable value. Most respondents advised deducting TDS from the total invoice value, as it is the established practice. However, one respondent argued that TDS should be deducted only from the service value, excluding service tax, since service tax is a statutory levy and not a payment for professional services. Despite this, the prevailing practice, influenced by a response from the Income Tax department, is to deduct TDS from the total value.