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Saturday, 18 January 2014

No deduction of TDS on Service Tax Component on payments to resident, if Service Tax is charged separately

The Central Board of Direct Taxes vide circular No.1/2014 dated 13-01-2014 has decided that wherever in terms of agreement/ contract between the payer and 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 component. 


Copy of Circular is available Here