Tds on rent
This query is : Resolved
12 October 2012
Hi,
Please find details of a monthly rent bill from a lessor:
Rent = 69300
Service Tax @ 12.36% = 8565
Total = 77865
TDS deducted = 6930
Is the lessee eligble for service tax credit? and if yes, please explain.
Please find details of a monthly rent bill from a lessor:
Rent = 69300
Service Tax @ 12.36% = 8565
Total = 77865
TDS deducted = 6930
Is the lessee eligble for service tax credit? and if yes, please explain.
12 October 2012
There is no need to deduct tds.
TDS Threshold limit is 1800000/-
and your rent bill amount less than threshold limit.
TDS Threshold limit is 1800000/-
and your rent bill amount less than threshold limit.
12 October 2012
Lessee can claim credit if it is in relation to manufacture or provision of taxable goods/services, modernization or repairs of factory or office, storage, quality control, recruitment, accounts, audit, sales promotion, procurement of inputs, legal services, financing, computer networking...
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12 October 2012
Threshold limit is Rs 1.80 Lacs per annum.
Regarding TDS on Service Tax Portion--
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.
Regarding TDS on Service Tax Portion--
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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12 October 2012
Dear Dileep,
But there is no much services done to take service tax registration to claim this credit. Is there any provision in service tax to earmark this credits accumulated for last 5 years so that the company can have a future benefit. if possible, please explain.
But there is no much services done to take service tax registration to claim this credit. Is there any provision in service tax to earmark this credits accumulated for last 5 years so that the company can have a future benefit. if possible, please explain.
12 October 2012
Really there is no such rule.
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