Section 194C

[DEBABRATA ROY]

CBDT two circular namely No 4 of 28/4/2008 and 275/73/2007IT(B) dt 30/06/2008 clearly states TDS would be deductable from gross amount including serv tax however same is not applicable for 194J. what about the situation for 194C for contractor and subcontractor casess

AI Summary

Debate on Section 194C: Should TDS Include Service Tax for Contractors? Clarifications on CBDT Circular Interpretation. A discussion on Section 194C of the Income Tax Act questions whether TDS should be deducted on the gross amount, including service tax, for contractors and subcontractors. The responses clarify that the exclusion of service tax from TDS applies only to Section 194J, not Section 194C. One participant argues that, based on the logic of the CBDT circular, Section 194C requires TDS on the gross amount, including service tax. Another participant contends that the interpretation of the circular regarding professional fees under Section 194J is incorrect, suggesting that TDS should apply only to fees.