TDS on amount inclusive of service tax??

Rohit Gupta (Querist) 08 January 2010 This query is : Resolved
Dear All

In case a service provider give me a bill with the following bill, on what amount should TDS (say 10%) be deducted? Whether gross or net of service tax?

Service Amount : Rs 1,00,000
Service Tax(say) : Rs 10,000
Total Amount : Rs 1,00,000

Thanks and regards.

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Vineet (Expert) 08 January 2010
Depends upon nature of service.

If service is in nature of renting of immovable property, no TDS to be deducted on Service Tax Amount.

In other cases TDS to be deducted on the entire bill.

soumitra basu (Expert) 09 January 2010
TDS has to be deducted on the amount credited or paid whichever is earlier. However, if it is rental income from immovable property no TDS has to be deducted upto Rs. 1,20,000.

Rohit Gupta (Querist) 09 January 2010
Dear Vineet

Please quote reference of the relevant section of Income Tax Act..

Thanks..

tarun goyal (Expert) 11 January 2010
yes, i agree with Rohit. furhter, if it is only with regard to service tax then please elaborate.

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