Applicability of TDS

[Hamonta Kumar Sarmah]

Whether TDS provision U/s. 194C and 194J of the Income Tax Act will be applicable on the gross contract amount payable (inclusive of service tax) or net contract amount payable (exclusive of service tax)

AI Summary

Debate on TDS Applicability: Gross Amount vs. Net Amount under Sections 194C and 194J of Income Tax Act A discussion on the applicability of TDS under sections 194C and 194J of the Income Tax Act questioned whether TDS should be applied to the gross contract amount including service tax or the net amount excluding it. One participant noted that a CBDT circular only addresses section 194I, implying TDS should not apply to the service tax portion for sections 194C and 194J. Another participant argued that TDS should be on the gross amount, including service tax. A third participant clarified that CBDT distinguishes between sections 194-I and 194-J, excluding TDS on the service tax component only for rent under section 194-I.