Tds on crane hiring charges

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This query is : Resolved

Gireesh Hegde (Querist)

25 April 2012 Hi,

Can anybody confirm whether TDS to be deducted on Crane Hiring Charges (194I) on Gross Charges or Full Invocie amount (after Service Tax)?

Thanks.
Gireesh

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

25 April 2012 In case of Invoice of Rent TDS is not required to be deducted on Service Tax.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

25 April 2012 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.

CA PRAVEEN SINGH

CA PRAVEEN SINGH (Expert)

25 April 2012 yes.Agree with all above.
TDS DEDUCTED INCLUDING SERVICE TAX.
CIRCULAR NO 4/2008
MANY TIME ASKED THIS QUESTION

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

25 April 2012 Praveen Ji i think you wanted to say "TDS TO BE DEDUCTED ON AMOUNT EXCLUDING SERVICE TAX" by mistake you have written "INCLUDING SERVICE TAX"

Gireesh Hegde

Gireesh Hegde (Querist)

21 May 2012 Thanks to All.

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