Tds on rent paid by bpo
This query is : Resolved
07 October 2013
Is BPO (as a Business Service Centre) providing call center services exempt from deducting TDS under section 194-I?
Please reply.
Please reply.
07 October 2013
Hi
Read the below link, it will help you:
https://itatonline.org/archives/index.php/acit-vs-infosys-bpo-itat-bangalore-law-on-s-192-tds-obligation-on-medical-reimbursement-ltc-explained/
Read the below link, it will help you:
https://itatonline.org/archives/index.php/acit-vs-infosys-bpo-itat-bangalore-law-on-s-192-tds-obligation-on-medical-reimbursement-ltc-explained/
07 October 2013
Thank You sir but....
Sir
I think there is some miss- communication I think.
What I want to ask is that if there is any kind of exemption to "Business Service Center" from liability to deduct TDS on rent?
Sir
I think there is some miss- communication I think.
What I want to ask is that if there is any kind of exemption to "Business Service Center" from liability to deduct TDS on rent?
08 October 2013
ok......
Doubts had cropped up on whether TDS should be calculated on the gross rental, inclusive of service tax or on net rental, excluding the amount paid as service tax. The Central Board of Direct Taxes (CBDT) also got many representations in this regards, following which it has clarified the matter.
“Service tax paid by the tenant doesn’t partake the nature of ‘income’ of the landlord. The landlord only acts as a collecting agency for government for collection of service tax,” the CBDT has clarified. So TDS, under sections 194-I of the Income Tax Act, would be required to be made on the amount of rent paid without including the service tax, it further added. TDS is deducted on rentals which are over Rs 12,000 per month at the rate of 20% for companies and 10% for individuals.
The clarification would help a number of BPO and retail companies which work out of leased offices. Budget 2007-08 had introduced the proposal to levy service tax at the rate of 12.36% on rental of immovable property used for commercial purpose.
You read the following case:
Serco Bpo Pvt. Ltd.,, Gurgaon vs Department Of Income Tax on 7 December, 2012
https://indiankanoon.org/doc/125497022/
Doubts had cropped up on whether TDS should be calculated on the gross rental, inclusive of service tax or on net rental, excluding the amount paid as service tax. The Central Board of Direct Taxes (CBDT) also got many representations in this regards, following which it has clarified the matter.
“Service tax paid by the tenant doesn’t partake the nature of ‘income’ of the landlord. The landlord only acts as a collecting agency for government for collection of service tax,” the CBDT has clarified. So TDS, under sections 194-I of the Income Tax Act, would be required to be made on the amount of rent paid without including the service tax, it further added. TDS is deducted on rentals which are over Rs 12,000 per month at the rate of 20% for companies and 10% for individuals.
The clarification would help a number of BPO and retail companies which work out of leased offices. Budget 2007-08 had introduced the proposal to levy service tax at the rate of 12.36% on rental of immovable property used for commercial purpose.
You read the following case:
Serco Bpo Pvt. Ltd.,, Gurgaon vs Department Of Income Tax on 7 December, 2012
https://indiankanoon.org/doc/125497022/
Message likes :
1 times
08 October 2013
Thank you for the material sir.
08 October 2013
Its my pleasure............
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING ITR FILING QUESTION
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
