No TDS on Service Tax Portion of Bill

No TDS on Service Tax Portion:

Long debated issue regarding whether TDS needs to be deducted on Total Bill amount or on Bill amount excluding service tax component has come to an end with the department circular No. 1/2014 DATED 13-1-2014(http://law.incometaxindia.gov.in/DIT/File_opener.aspx?page=CIR&schT&csId=6909497d-c6ac-4b7c-b6ad-fa2e83da28c5&crn&yr=ALL&sch&title=Taxmann+-+Direct+Tax+Laws)

With this circular, the department has clarified that, where the service tax component comprised in the amount payable to a RESIDENT is indicated separately, TDS shall be on the amount paid/payable without including such service tax component.