Tds on rent paid

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This query is : Resolved

ABHAY KUMAR (Querist)

24 January 2015 We have rent paid of Rs.25000.00 for office use and landlord charges Service tax Rs.3090.00.we have not taken input service tax.
My query is on which amuont TDS will be deducted 25000.00 of 28090.00

Thanks & Regards,
Abhay-9650300875

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

24 January 2015 TDS to be deducted on Rs 25000/- i.e., on amount excluding service tax.

TDS to be deducted on amount excluding service tax for all sections. The CBDT has issued Circular No. 1/2014 dated 13.01.2014 pointing out that the Rajasthan High Court has taken the view in CIT(TDS) vs. Rajashthan Urban Infrastructure that if as per the terms of the agreement between the payer and the payee, the amount of service-tax is to be paid separately and was not included in the fees for professional services or technical services, no TDS is required to be made on the service-tax component u/s 194J of the Act. Pursuant thereto, the CBDT has decided in exercise of powers u/s 119 that wherever the terms of the agreement/ contract between the payer and the payee, the service tax component comprised in the amount is indicated separately, tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without including such service tax component. Complete notification may be seen from below link--
https://law.incometaxindia.gov.in/DIT/Circulars.aspx