Income -tax deducted at source is consideration received for services or for goods sold hence cannot be deducted from consideration for the purpose of levying any tax like service tax, VAT or Sale Tax.

Income -tax deducted at source is consideration received for services or for goods sold hence cannot be deducted from consideration for the purpose of levying any tax like service tax, VAT or Sale Tax. https://www.taxtmi.com/article/detailed?id=289 ITDS is part of the contractual consideration and must be included in the gross value for computing service tax and VAT. The tribunal held that withheld ITDS, being payable to the revenue only on behalf of the service provider, cannot be excluded from the taxable value; it allowed the department's appeal on valuation and interest but affirmed that penalties were not warranted where the issue involved a pure interpretation of law. en-us Mon, 16 Feb 2009 00:00:00 +0530 Mon, 16 Feb 2009 08:48:49 +0530 TaxTMI RSS Generator Income -tax deducted at source is consideration received for services or for goods sold hence cannot be deducted from consideration for the purpose of levying any tax like service tax, VAT or Sale Tax. https://www.taxtmi.com/article/detailed?id=289 ITDS is part of the contractual consideration and must be included in the gross value for computing service tax and VAT. The tribunal held that withheld ITDS, being payable to the revenue only on behalf of the service provider, cannot be excluded from the taxable value; it allowed the department's appeal on valuation and interest but affirmed that penalties were not warranted where the issue involved a pure interpretation of law. Articles Service Tax Mon, 16 Feb 2009 00:00:00 +0530 https://www.taxtmi.com/article/detailed?id=289