https://www.taxtmi.com/article/detailed?id=102 Government levies such as service tax, VAT and municipal tax, when collected by a supplier or service provider, are not the provider's income but amounts collected on behalf of the government and diverted at source; therefore TDS should be deducted only on the provider's fees, commission or contract payments and not on the element of such levies. A departmental circular excluding service tax from taxable rent embodies this principle and supports issuing a broad clarification to extend the rule to other services and local levies to avoid inconsistent deductions, refunds and litigation. en-us Wed, 11 Jun 2008 00:00:00 +0530 Fri, 06 Mar 2009 12:51:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=102 Government levies such as service tax, VAT and municipal tax, when collected by a supplier or service provider, are not the provider's income but amounts collected on behalf of the government and diverted at source; therefore TDS should be deducted only on the provider's fees, commission or contract payments and not on the element of such levies. A departmental circular excluding service tax from taxable rent embodies this principle and supports issuing a broad clarification to extend the rule to other services and local levies to avoid inconsistent deductions, refunds and litigation. Articles Income Tax Wed, 11 Jun 2008 00:00:00 +0530 https://www.taxtmi.com/article/detailed?id=102