DYKS

15 Shares
facebook sharing button Share
twitter sharing button Tweet
email sharing button Email
sharethis sharing button Share
linkedin sharing button Share
17 Jan 2014

No TDS on Service Tax Portion under Section 194J of the Income Tax Act, 1961

Recently, the Central Board of Direct Taxes has come with a welcome step for the professionals and issued Circular No. 01/2014 dated 13.01.2014 clarifying that TDS under Section 194J (chapter XVII-B of the Income Tax Act, 1961) shall be deducted on the amount paid/payable pursuant to the agreement/contract, without considering the Service tax portion.

As a result of the same, if Service tax payable has been shown separately in the invoice, TDS on professionals under Section 194 J shall be deducted only on the amount as agreed in agreement/contract.