TDS deduction on rentals paid

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HARI VENKATACHALAM

HARI VENKATACHALAM (Querist)

22 August 2007 Whether TDS is to be deducted on rentals plus service tax or only on Rentals?

HARI VENKATACHALAM

HARI VENKATACHALAM (Querist)

22 August 2007 Justifiable clarification required on the applicability of TDS on rentals or Rentals plus service tax

CA Mani

CA Mani (Expert)

22 August 2007 It's a controversial issue.

But If we read the act they will talk about tax to be withholded on income.

As far as we pay the service tax to the govt., It'll be treated as our income.

So, Better to deduct on Rent + Service tax.

Nitesh

Nitesh (Expert)

22 August 2007 No TDS to be deducted only on rent and not on service tax.

Jitender

Jitender (Expert)

22 August 2007 i AGREE with mani & hari

Raj

Raj (Expert)

22 August 2007 yes its comman practice to deduct TDS from Rent + Service tax

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)

13 December 2007 I want to put my different views on this issue. As per section 194I, TDS on rent is deductible on 'payment of any income by way of rent'. I think service tax collected does not form part of income by way of rent, hence should not be added with Rent for TDS deduction.
However, I agree that the issue is controversial.