TDS applicability on 'Service Tax Component'
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Whether TDS is to be made on 'Service Tax Component' included in a bill of Consultancy Services/Commission etc..
Debate on TDS Applicability: Should TDS Include Service Tax in Consultancy Bills? Refer to CBDT Clarification. A query was raised about the applicability of Tax Deducted at Source (TDS) on the service tax component included in consultancy service bills. One participant argued that service tax is collected in a trusteeship capacity for the government and is not actual income, suggesting the issue requires further attention. Another participant referenced a CBDT letter clarifying that TDS should be applied to the total payable amount, including the service tax component. (AI Summary)