23 May 2014
Dear All, Can any body confirm whether tds to be deducted or not service tax if service tax amount not mentioned saperately in agreement and mentioned only rental amount per month.Is there any latest circular regarding this.
23 May 2014
Ref Circular 1/2014 wherein if the Service tax part is clearly mentioned in the agreement then TDS need not be deducted on the Service tax portion.
However the circular no 4/2008 says that the TDS on Rent will be only on basic and will not include service tax.
Thus if the rental invoice is having breakup along with Service tax registration number there is no issue. However it would be better if the agreement can be amended to mention Service tax.
CAclubindia
