Mr A who is a foreigner gave his property in india on rent to xyz ltd, ie a company. for rs 900000 payable in advance. the rental agreement specifically provided that xyz ltd will be bearing tds burden additionally.
here 195A will be applicable which says that for such type of agreements tds has to be deducted after increasing the income to an amount such that after deducting the tds the net amount payable is 900000. /-
now plz tell me what will be the taxale value under service tax.... ?
900000 or 1000000 ( being the increased amount )
hint :
Section 66A apllicable
rule 7 (1) of stcr 2006 rules apllicable which says that the value of taxable services received under the provisions of section 66A shall be such amount as is equal to the actual consideration charged for the services provided or to be provided
I think the answer is 900000 .... after reading the actual word highlighted above. pleasee suggest as to the same !!
CAclubindia
