TaxTMI 
TaxTMI 
No TDS on Service Tax if shown separately
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....o TDS on Service Tax if shown separately<br>By: - Bimal jain<br>Service Tax<br>Dated:- 18-1-2014<br><br>Dear Professional Colleague, No TDS on Service Tax if shown separately Pursuant to an important judgement of the Hon'ble Rajasthan High Court, in the case of Commissioner of Income Tax (TDS), Jaipur Vs. M/s. Rajasthan Urban Infrastructure [2013 (8) TMI 12 - RAJASTHAN HIGH COURT] holding that ....
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....if as per the terms of the agreement between the payer and the payee, the amount of service tax is to be paid separately and was not included in the fees for professional services or technical services, no TDS is required to be made on the service tax component u/s 194J of the Income Tax Act, 1961 ("the Act"). Earlier, vide Circular No. 4/2008 dated 28-04-2008 it was clarified that tax is to be d....
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....educted at source under Section 194-I of the Act, on the amount of rent paid/payable without including the service tax component. Representations/letters has been filed to CBDT seeking clarification whether such principle can be extended to other provisions of the Act also. CBDT has examined the matter afresh and clarified vide Circular No. 1/2014 dated 13-1-2014 -"TDS under Chapter XVII-B of the....
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.... Income-tax Act, 1961 on service tax component comprised of payments made to residents" that wherever in terms of the agreement/contract between the payer and the payee, the service tax component comprised in the amount payable to a resident is indicated separately, tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/ payable without including such service tax compon....
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....ent. Hope the information will assist you in your Professional endeavors. In case of any query/ information, please do not hesitate to write back to us. Thanks & Best Regards. Bimal Jain FCA, FCS, LLB, B.Com (Hons) F-30/31/32, Pankaj Grand Plaza 1st Floor, Mayur Vihar, Phase-I, Delhi - 110091 India Desktel:+91-11-22757595; Mobile:+91 9810604563 email: bimaljain at the rate of hotmail.com ....
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.... Disclaimer: The contents of this document are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the authors nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this document nor for any actions taken in reliance thereon. Readers are advised to consult the professiona....
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....l for understanding applicability of this newsletter in the respective scenarios. While due care has been taken in preparing this document, the existence of mistakes and omissions herein is not ruled out. No part of this document should be distributed or copied (except for personal, non-commercial use) without our written permission.<br> Scholarly articles for knowledge sharing by authors, experts....
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...., professionals ....