TDS DEUCTION
This query is : Resolved
25 May 2011
DEAR EXPERT'S,
PLEASE CLEAR ME THAT "IF SERVICE TAX CHARGE ON BILL THAN TDS WILL DEDUCT ON TOTAL BILL VALUE OR EXCLUDING SERVICE TAX.
I THINK SOME SERVICE DEUCTION EXCLUDING SERVICE TAX. BUT I DON'T NO WHICH ARE. PLEASE CLEAR THAT SERVICES.
WITH BEST REGARDS
VIKRAM SINGH TAWER
viccy123tawer@rediffmail.com
PLEASE CLEAR ME THAT "IF SERVICE TAX CHARGE ON BILL THAN TDS WILL DEDUCT ON TOTAL BILL VALUE OR EXCLUDING SERVICE TAX.
I THINK SOME SERVICE DEUCTION EXCLUDING SERVICE TAX. BUT I DON'T NO WHICH ARE. PLEASE CLEAR THAT SERVICES.
WITH BEST REGARDS
VIKRAM SINGH TAWER
viccy123tawer@rediffmail.com
25 May 2011
U HAVE NOT STATED THE RELEVANT SECTION UNDER WHICH TAX IS TO BE DEDUCTED
THERE ARE TWO CLARIFICATIONS FM CBDT
1.Service tax paid by the tenant does not partake the nature of income of the landlord. The landlord only acts as a collecting agency for Government for collection of service tax. Therefore it has been decided that tax deduction at source (TDS) under sections 194-I of Income Tax Act would be required to be made on the amount of rent paid/payable without including the service tax.—Vide Circular No. 4/2008, dt. 28-4-2008.
2.The payments made under section 194-I differ significantly from payment made under sec-tion 194J in the way that in the case of 194-I TDS has to be deducted on any income paid as rent. However, in the case of section 194J TDS has to be deducted on any sum paid as professional and technical fees. The Board had decided to exclude TDS on service tax component on rental payment because it was construed that service tax payment cannot be regarded as income of the landlord. Since section 194J covers any sum paid, therefore the board has decided not to extend the scope of Circular No. 4/2008, dated 28-4-2008 to such payment under section 194J.—Vide Circular F.No. 275/73/ 2007-IT(B), dt. 30-6-2008.
CA MANOJ GUPTA
JODHPUR
09828510543
THERE ARE TWO CLARIFICATIONS FM CBDT
1.Service tax paid by the tenant does not partake the nature of income of the landlord. The landlord only acts as a collecting agency for Government for collection of service tax. Therefore it has been decided that tax deduction at source (TDS) under sections 194-I of Income Tax Act would be required to be made on the amount of rent paid/payable without including the service tax.—Vide Circular No. 4/2008, dt. 28-4-2008.
2.The payments made under section 194-I differ significantly from payment made under sec-tion 194J in the way that in the case of 194-I TDS has to be deducted on any income paid as rent. However, in the case of section 194J TDS has to be deducted on any sum paid as professional and technical fees. The Board had decided to exclude TDS on service tax component on rental payment because it was construed that service tax payment cannot be regarded as income of the landlord. Since section 194J covers any sum paid, therefore the board has decided not to extend the scope of Circular No. 4/2008, dated 28-4-2008 to such payment under section 194J.—Vide Circular F.No. 275/73/ 2007-IT(B), dt. 30-6-2008.
CA MANOJ GUPTA
JODHPUR
09828510543
25 May 2011
But Mr.Manoj Gupta i Beleive there is a stay of Delhi High Court on the Point No. 1.
26 May 2011
the stay u are talking abt imight be on leviability of service tax on renting of immovable property that is another matter
so far as tax deduction ois concerned there is no stay
so far as tax deduction ois concerned there is no stay
26 May 2011
Gupta Sir,Thanks for Reply
The T.D.S.Deduction of Professional Services in Export (Section 194J).
Sir,
I want to know Which services are, Which has tds Deduction exluding Service Tax. is it only rent or any others.
Please clear.
Thanks & Regards
Vikram Singh Tawer
09098500192
The T.D.S.Deduction of Professional Services in Export (Section 194J).
Sir,
I want to know Which services are, Which has tds Deduction exluding Service Tax. is it only rent or any others.
Please clear.
Thanks & Regards
Vikram Singh Tawer
09098500192
26 May 2011
other cases where service tax may be leviable are covered by section 194C and 194J
in both these cases as per present clarifiactions tax will be deducted inclusive of service tax
in both these cases as per present clarifiactions tax will be deducted inclusive of service tax
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