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.
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)
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
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