INCOME TAX QUERY

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vishal (Querist)
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26 August 2008 1)LIC commission received by agent is exempt under which section

2)Explain whether the TDS to be deducted on the amount including service tax or on excluding service tax?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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02 April 2012 1. LIC commission is NOT exempt. It is taxable in the hands of the recipient.

2. If the TDS is to be deducted u/s 194I, then TDS shall be deducted only on the rental portion excluding service tax.

If however, TDS is to be deducted u/s 194C or 194J or other sections, then the TDS shall be deducted on the total bill amount including service tax.

Read circular 4/2008 dated 28.03.2008.

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