Tds on service tax
This query is : Resolved
02 May 2012
Is any bill raised u/s 194B, 194H, 194G TDS will deduct on bill amount inclusive of Service Tax?
02 May 2012
Yes inclusive of service tax. This is as a corollary to CBDT Circular 4/2008 dated 28/04/2008.
02 May 2012
As per Circular No.4/2008 dated 28.4.2008, it was clarified that TDS on rental payments would be required to be made only on the basic rental amount without including service tax. In other words, TDS should not be made on the service tax portion of the rent. However, this analogy is not applicable to TDS under other sections.
In short--
For 194I - Deduct TDS on amount excluding service tax.
For other section - Deduct TDS on amount including service tax.
In short--
For 194I - Deduct TDS on amount excluding service tax.
For other section - Deduct TDS on amount including service tax.
Amol S Joglekar
(Expert)
02 May 2012
Concentrate on the WORDS used in the section. 194D, 194G, 194H and 194I use the words INCOME and hence TDS be deducted on NET amount (Exclusive of service tax) But 194C and 194J use the words SUM and hence deduct TDS on gross (Inclusive of service tax)
Message likes :
2 times
CA PRAVEEN SINGH
(Expert)
02 May 2012
Agree with all above...
tds deducted including service tax.except tds on rent ie 194 i.
tds deducted including service tax.except tds on rent ie 194 i.
18 December 2012
Agree with Amol Joglekar ji....circular was for rental income and we should see any sum payable words and any income used in TDS sections..
18 December 2012
CIRCULAR NO. 4/2008, DATED 28-4-2008:
Representations/letters have been received in the Board seeking clarification as to whether TDS provisions under section 194-I of the Income-tax Act will be applicable on the gross rental amount payable (inclusive of service tax) or net rental amount payable (exclusive of service tax).so its clarification regarding 194-I,
, tax is deductible at source on income by way rent paid to any resident, so as in all other sections except 194C, and 194J income word is there
Representations/letters have been received in the Board seeking clarification as to whether TDS provisions under section 194-I of the Income-tax Act will be applicable on the gross rental amount payable (inclusive of service tax) or net rental amount payable (exclusive of service tax).so its clarification regarding 194-I,
, tax is deductible at source on income by way rent paid to any resident, so as in all other sections except 194C, and 194J income word is there
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
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Issuing of delivery challan by seller of goods
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Transfer of Physical Stock Between Two Proprietorship Concerns
- MSME disclosure and disallowance
- Taxation of crypto futures in India Fy 2026- 2027
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
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
