<h1>CBDT Clarifies TDS Rules: Section 194J Requires Deduction on Total Amount Including Service Tax; Section 194I Excludes It.</h1> The issue of whether Tax Deducted at Source (TDS) applies to service tax has been clarified by the Central Board of Direct Taxes (CBDT). Initially, a circular stated that TDS under section 194-I of the Income Tax Act should be on rent amounts excluding service tax. This led to the belief that no TDS was required on service tax for other payments. However, a subsequent circular clarified that for payments under section 194J, which covers professional and technical services, TDS must be deducted on the total amount, including service tax. This distinction arises from the different scopes of sections 194I and 194J.