Service tax & TDS

[manoj raut]

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?

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.