Tds on rent

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This query is : Resolved

Rajendra Singh Manwal (Querist)

21 July 2014 Dear sirs

we have booked exxibition space ( HALLS ) + with A.C. Charges and Electricity Charges, Lile Amount Rs. 2000000/- + 5 % security 100000/- + Service Tax 12.36 % On 20lakh Rs. 247200/- Total Amount Rs. 23,47,200/- Let me know that whitch amout TDS wILL BE DEDUCTED U/S 194I ? on Total Amount Or before service tax and security amount.

Thanks

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

21 July 2014 tds to be deducted on amount excluding service tax portion.

Rajendra Singh Manwal

Rajendra Singh Manwal (Querist)

23 July 2014 Ok Thanks sir

This Condition also on Commission tds ( 194H)

and contectors (194 C) ? Please confirm

Rajendra Singh Manwal

Rajendra Singh Manwal (Querist)

23 July 2014 Ok Thanks sir

This Condition also on Commission tds ( 194H)

and contectors (194 C) ? Please confirm

Thanks

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

27 July 2025 Hey! Here’s the breakdown for your query on **TDS deduction on Rent (Sec 194I)** and also on Commission (194H) and Contractors (194C):

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### 1. **TDS on Rent (Section 194I):**

* **TDS should be deducted on the amount excluding Service Tax.**
* So in your case:

* Rent + A.C. + Electricity Charges = Rs. 20,00,000
* Security deposit (Rs. 1,00,000) **is not taxable rent**, so **no TDS on security deposit**.
* Service tax (Rs. 2,47,200) is **not part of the rent** for TDS calculation.
* **Therefore, TDS under Section 194I is on Rs. 20,00,000 only (excluding service tax and security deposit).**

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### 2. **TDS on Commission (Section 194H) and Contractors (Section 194C):**

* **Same rule applies here as well:**

* TDS should be deducted on the **amount excluding service tax**.
* Service tax is a **pass-through amount and not part of the taxable income for TDS purposes**.
* So deduct TDS on commission/contractor charges **before adding service tax**.

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### Summary:

| Section | Amount on which TDS is deducted |
| ------- | ----------------------------------------------------------------- |
| 194I | Rent + other charges (excluding service tax and security deposit) |
| 194H | Commission amount (excluding service tax) |
| 194C | Contract amount (excluding service tax) |

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If you want, I can help you prepare a sample TDS deduction calculation or a letter explaining this for your accounts team?

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