TDS
This query is : Resolved
YATHARTH SHARMA
(Querist)
21 December 2010
Dear Sir/Madam,
Is the amount of service tax be included in the amount paid or payable for the deduction of income tax at source,,,
for eg.
basic amount :- 1000
Add:- sercive tax @10.3% 103
total amount of bill 1103
should the TDS be deducted on Rs.1000 or Rs.1103/-
pls tell me with references of provisions of law
Is the amount of service tax be included in the amount paid or payable for the deduction of income tax at source,,,
for eg.
basic amount :- 1000
Add:- sercive tax @10.3% 103
total amount of bill 1103
should the TDS be deducted on Rs.1000 or Rs.1103/-
pls tell me with references of provisions of law
21 December 2010
CBDT has given clarification on the matter by issuing circular stating that u/s 194-I TDS is deductible only on the rental income & not on service tax (circular no. 4 dated 28-04-2008) and u/s 194-J TDS is deductible on gross amount i.e. inclusive of service tax. (Dated 30-06-2008). The reason given by CBDT are that provisions of section 194-I requiers deduction of tax at sources on "any income by way of rent", whereas provisions of section 194-J requires deduction of tax at sources on "any sum payable" by way of professional fee, for technical services, royalty & non compete fee.
21 December 2010
In case of rental income, TDS shall be only on rent amount excl ST and
in case of 194J the amount shall be incl ST.
in case of 194J the amount shall be incl ST.
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