Tds on amount plus service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 December 2011 the bill amount including service tax is 11030. on bill without service tax amount is10000. on which amount we deduct tds

Ankur

Ankur (Expert)
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09 December 2011 What bill is it ??? is it rent or i is for contact or professional

Ankur

Ankur (Expert)
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09 December 2011 What bill is it ??? is it rent or it is for contract or professional

Hari Beldona

Hari Beldona (Expert)
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09 December 2011 The CBDT vide circular no 4/2008 dated 20.08.2008 has clarified that 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.so in view of this clarification, tax deduction at source u/s 194-I of income tax act would be required to be made on the amount of rent paid/payable without including the service tax.
though u/s 194-C(1) and 194C(2) and payment relating to professional/technical charges u/s 194J,are also subject to service tax.in respect of those payment,TDS shall continue to be made on the amount which is inclusive of service tax as there is no such clarification from CBDT.

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