Can service tax paid be deducted from income tax?Service tax as such cannot be deducted from the income tax payable by an assessee. However, the entire cost of any service availed for the purpose of business, including the service tax paid, is considered a deductible expense while computing the income under the head income from business or profession. For example, your business telephone bill, including the service tax, is a deductible expense while computing the business income.
