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Is TDS is inclusive of service tax or exclusive of service tax?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 niru asked almost 3 years ago

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6 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Ashika answered over 2 years ago

Previously there was no clarrification on this matter by the income tax department so all were deducting TDS inclusive of Service tax, as because of this there was a problem as we were deducing tax on tax only so it was not a correct concept. So Income Tax department has made a circular "Circular 01/2014 dated 13.01.2014 - TDS NOT TO BE DEDUCTED ON SERVICE TAX COMPONENT SHOWN SEPARATELY" which clearly explain that the TDS to be deducted exclusive of service tax.

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Open uri20170510 32134 1c996lj?1494421732 Anil answered over 2 years ago

Income Tax department has made a circular "Circular 01/2014 dated 13.01.2014 - TDS NOT TO BE DEDUCTED ON SERVICE TAX COMPONENT SHOWN SEPARATELY" which clearly explain that the TDS to be deducted exclusive of service tax. For reference see the circular Circular 01/2014 dated 13.01.2014.

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Data?1494421738 samkit kothari answered almost 3 years ago

Dear Niru, Previously there was no clarrification on this matter by the income tax department so all were deducting TDS inclusive of Service tax, as because of this there was a problem as we were deducing tax on tax only so it was not a correct concept. So Income Tax department has made a circular **"Circular 01/2014 dated 13.01.2014 - TDS NOT TO BE DEDUCTED ON SERVICE TAX COMPONENT SHOWN SEPARATELY"** which clearly explain that the TDS to be deducted exclusive of service tax. For reference see the circular **Circular 01/2014 dated 13.01.2014**.

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Picsjoin 2017224123730582 Archana answered almost 3 years ago

Hie Niru, **TDS is to deducted on the amount exclusive of service tax if the service tax amount is shown separately.** However, earlier TDS on service tax was to be deducted on amount inclusive of service tax for all payments except rent.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 lochan answered almost 3 years ago

Hi, TDS is always to be deducted on the income of the receiver . Service Tax is not an income to the receiver because he collects it from the government and pays it to the Government so service tax is not income to service provider Hence TDS is not deducted inclusive of service tax it is always exclusive of service tax Thanks :)

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Open uri20170510 32134 tcchcu?1494421832 Jitendra Suthar answered almost 3 years ago

Hiiii friend.... One tax does not have any cascading effects on another tax. So always a Tax is calculated exclusive of any other Tax. So the **TDS is always exclusive of service Tax** and any other Tax if any. Regards,

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