TaxTMI 
TaxTMI 
TDS applicability on "Service Tax Component"
14 Oct 2007 
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TDS on service tax: withholding applies to the entire payable amount including the service tax component.
The note contrasts a trusteeship-based view that service tax collected is not the recipient's income and thus should be excluded from TDS with an administrative clarification requiring TDS to be applied to the entire payable amount, explicitly including the service tax component, resulting in a directive to compute withholding on the full bill amount. (AI Summary)
The note contrasts a trusteeship-based view that service tax collected is not the recipient's income and thus should be excluded from TDS with an administrative clarification requiring TDS to be applied to the entire payable amount, explicitly including the service tax component, resulting in a directive to compute withholding on the full bill amount. (AI Summary)
Whether TDS is to be made on "Service Tax Component" included in a bill of Consultancy Services/Commission etc..