Tds no rent

Save Share

This query is : Resolved

Yogesh (Querist)
Follow

27 July 2013 Our Company taken a building on rent party charge Rs. 100000 + 12.36% ST and bill raise to our company of Rs.112360/-
My query is that our company TDS will be deduct on 112360/- or basis bill value Rs. 100000/-. please tell me with rule section.

CA Ravi Kumar Murugesh

CA Ravi Kumar Murugesh (Expert)
Follow

27 July 2013 CBDT vide circular no:4/2008 clarified that while deducting TDS on rental payments, there is no need to consider service tax. It means., tds is to be deducted only on rent because service tax paid by the tenant doesnt partake the nature of the income of the landlord.

Message likes : 1 times

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

27 July 2013 TDS to be deducted on amount excluding service tax i.e., on Rs 100000/-

As per Circular No.4/2008 dated 28.4.2008, it was clarified that TDS on rental payments would be required to be made only on the basic rental amount without including service tax. In other words, TDS should not be made on the service tax portion of the rent. However, this analogy is not applicable to TDS under other sections.

In short--
For 194I - Deduct TDS on amount excluding service tax.
For other section - Deduct TDS on amount including service tax.

Message likes : 1 times

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