TDS on Rent

This query is : Resolved

Mohd Sarfaraz Latibani (Querist)
Follow

06 January 2009 I am paying a rent for my office including service tax, so should I deduct the TDS on the whole amount or I have to deduct service tax from the rent and then deduct TDS

Jitender

Jitender (Expert)
Follow

06 January 2009 u need to deduct exclusive of service tax in case of rent;i.e, tds is to be deducted on rent portion only.

CA Chaitanya

CA Chaitanya (Expert)
Follow

06 January 2009 The following example gives you a clear picture of the provisions relating to rent, service tax and TDS.

CA Chaitanya

CA Chaitanya (Expert)
Follow

06 January 2009 Let us assume the total rent is 10,00,000 and TDS is 15%, and the service tax rate is 12.36%.

CA Chaitanya

CA Chaitanya (Expert)
Follow

06 January 2009 Total rent = 10,00,000
Add: Servie tax = 1,23,600 (i.e 12.36% on 10,00,000)
Less: TDS = (1,50,000) (i.e 15% on 10,00,000)
Total amount to
be paid = 973600

CA Chaitanya

CA Chaitanya (Expert)
Follow

06 January 2009 So you need to deduct TDS on the rent portion only.

CA Chaitanya

CA Chaitanya (Expert)
Follow

06 January 2009 And not on the amount that is including service tax.

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