Tds on which amount

This query is : Resolved

anckoora (Querist)
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05 October 2013 DEAR EXPERTS

PL. REMOVE MY FOLLOWING CONFUSION.

(1) TDS TO BE DEDUCTED ( UNDER 94C, 94J, 94I)
ON WHICH AMOUNT ? i.e., ON TOTAL BILL AMOUNT ( INCLUDING SERVICE TAX CHARGED ON US ) OR ON AMOUNT BEFORE SERVICE TAX, i.e. BASIC AMOUNT ?

PLEASE ELABORATE YOUR REPLY THESE 3 SECTION-WISE

THANKS

ANCKOORA

@VaibhavJ

@VaibhavJ (Expert)
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05 October 2013 Hey

It was announced that the exemption from deducting TDS on Service Tax is only under Section 194I for the rent paid.

And therefore TDS on service tax is liable to be deducted on all payments other than for rent paid.

Pl refer for announcement: http://law.incometaxindia.gov.in/Directtaxlaws/act2005/cirsec194J.htm

Thanks//VaibhavJ

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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05 October 2013 For professional charges covered u/s 194J also, income tax need to be deducted on the fee element only ie, excluding service tax.
Citation:- CIT (TDS),Jaipur Vs. M/s. Rajasthan Urban Infrastructure [2013] (8) TMI 12(Rajasthan).