Tds on rent

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Rajendra Singh Manwal (Querist)
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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)
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21 July 2014 tds to be deducted on amount excluding service tax portion.

Rajendra Singh Manwal

Rajendra Singh Manwal (Querist)
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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)
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23 July 2014 Ok Thanks sir

This Condition also on Commission tds ( 194H)

and contectors (194 C) ? Please confirm

Thanks

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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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):

---

### 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).**

---

### 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**.

---

### 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) |

---

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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