Tds no rent
This query is : Resolved
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.
My query is that our company TDS will be deduct on 112360/- or basis bill value Rs. 100000/-. please tell me with rule section.
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.
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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.
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.
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