the relevant sections for TDS states that TDS is to be deducted on the sum/amount paid.
expenses such as manpower consultancy/ professional charges / room rent in hotels contain either service tax component / luxury tax.
now should TDS be deducted on the entire bill amount or bill amount less service tax/ luxury tax?
most clients argue that service tax/ luxury tax is already a form of indirect tax. deducting TDS on it would be burdening.
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