Tds on rent and professional fees

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J P SINGH (Querist)
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03 September 2013 tds is to be deducted on rent value or rent+st=total bill value ? tds is to be deducted on prof. fees or prof. fees+st=total bill value ? plz tell me the solution...

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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03 September 2013 1) TDS on rent element only. Refer CIRCULAR NO. 4/2008, DATED 28-4-2008.

2) TDS on professional fee element only. Refer CIT Vs Rajasthan Urban Infrastructure (2013) 8 TMI 12 (Raj).

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Arun Jain

Arun Jain (Expert)
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12 October 2013 Correct, but eveu if you have deducted TDS on total amount dont worry, you will not be penalised, you just have to convince your vendor/service provider.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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12 October 2013 For 194I purpose, TDS will be on only rental amount and not on service tax amount.

In respect of payments u/s 194C TDS has to be made on payment inclusive of service tax.