Initial Legislative Update Note - India - Change in calculation logic for Withholding Tax (TDS) on S

 Hi

Government Of India has come up with a new circular as below..

As per the mentioned provisions under Circular No. 1/2014 dated 13.01.2014

Quote from the Circular No. 1/2014 dated 13.01.2014

No TDS on Service tax if shown Separately. CBDT accepts Rajasthan Court order

The CBDT has issued Circular No. 1/2014 dated 13.01.2014 pointing out that the Rajasthan High Court has taken the view in CIT(TDS) vs. Rajashthan Urban Infrastructure (copy attached) that 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 Act. Pursuant thereto, the CBDT has decided in exercise of powers u/s 119 that wherever the terms of the agreement/