Tds u/s 194i

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Sivaramakrishna

Sivaramakrishna (Querist)
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29 March 2013 Why TDS is not deducted including service tax in the case of Rental services provided?

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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29 March 2013 As the section uses the word "INCOME". the amount of service tax does not constitute income for the land lord.

(194I-Any person, not being an individual or a Hindu undivided family, who is responsible for paying to any INCOME by way of rent...............)

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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29 March 2013 Please see CBDT Circular 4/2008,dated 28.04.2008.

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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29 March 2013 Because CBDT Specifically Issued Circular for the Same.

Sivaramakrishna

Sivaramakrishna (Querist)
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29 March 2013 Thank you sir

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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29 March 2013 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.

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