Tds on service tax portion

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2015 First of all , please read this question carefully.

a bill received for rent taken for official purpose, i have huge input
my employer say that INPUT on rent booked as expenses , now question arises that whether
TDS deducted on only Rent amount without service tax or on total amount.
Bill
Rent 100000
service tax 14000
total --------
1,40,000

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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12 June 2015 Tds will b only on rent amount dear...I.e. ten lakh

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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12 June 2015 TDS to be deducted on amount excluding service tax i.e., on Rs 100000/- (Correct the total which will be Rs 114000/- and not Rs 140000/-)

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 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/ contract between the payer and the payee, the service tax component comprised in the amount is indicated separately, tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without including such service tax component. Complete notification may be seen from below link--

http://www.incometaxindia.gov.in/communications/circular/910110000000001055.pdf