TDS DEUCTION

This query is : Resolved

Vikram Singh Tanwar (Querist)
Follow

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

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
Follow

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

Akhil Agrawal

Akhil Agrawal (Expert)
Follow

25 May 2011 But Mr.Manoj Gupta i Beleive there is a stay of Delhi High Court on the Point No. 1.

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
Follow

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

Vikram Singh Tanwar

Vikram Singh Tanwar (Querist)
Follow

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

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
Follow

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

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Sanoj T

Venkateshwaran Ekambaram

Jagannathan Seshadri

Ravikumar

Fredrick Samraj

Subscribe Now

TDS DEUCTION

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA