TDS applicability

[Guest]

is TDS applicable on service tax amount of an income

[Ravi Chopra]

Yes, service tax is the part of the total amount paid. The TDS is applicable on the amount paid. Therefore, TDS is to be deducted on the gross amount inclusive of service tax.

[Brijesh Verma]

Yes, in my considered opinion tax should be deducted at source on the amount of services tax charged by the service provider. TDS provisions are npt qualified regarding the amount on which tax is to be deducted.

[rishi mohan]

Sir, Tds applicability is on the total amount of the invoice. Service tax is considered as a part of invoice and is included in the invoice value. Therefore tds is applicable on service tax amount of an income.

AI Summary

TDS on gross invoice amounts: deduct tax on payments inclusive of service tax charged by the service provider. TDS is deductible on the total invoice amount, inclusive of service tax, because service tax is part of the invoice value and the TDS provisions do not exclude service tax from the base on which tax is to be withheld; payors should calculate and deduct TDS on the gross amount paid to the service provider.