Tds on rent

This query is : Resolved

elangovan (Querist)
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08 October 2012 I want to know whether we have to consider the ST component while deducting TDS on Rent.

i came across a circular : [Circular No.4, dt. 28-4-2008: 300 ITR (St.) 92]
which says that we should not consider the ST component.

Please Clarify

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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08 October 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.

elangovan

elangovan (Querist)
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08 October 2012 Thanks again sir

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