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Implication for tds deducted on rent after inclusive of st.

Arun (a) (65 Points)

27 April 2012

Dear Sirs

example: rent = 100 + st 10.30 = total 110.30

I have deducted TDS on Rent on Rs.110.30 (including of Service tax).

As per rule i have deducted excess TDS, please let me know what will be implication for me for deducting excess tds on rent (after including service tax)

My auditors said that I have deducted excess tds, hence please let me know what will be implication on deducting excess tds - is there any penalty ??

Kindly confirm urgently.

Thanks and regards

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8 Replies

CA Syed Raza Abbas Rizvi (PROPRIETOR ) (631 Points)
Replied 27 April 2012

Please refer the follwoing circular

CIRCULAR NO. 2/2011 [F.NO. 385/25/2010-IT(B)], DATED 27-4-2011

Arun (a) (65 Points)
Replied 27 April 2012

Sir I have not made double payment of TDS but instead of deducting tds on Rs.100/-, i have deducted tds on Rs.110.30 (i.e. inclusive of Service Tax) (tds on rent) Hence what will be implication of deducting extra tds on service tax amount.

Anupreksha Thote (CA) (285 Points)
Replied 27 April 2012

Circular states refund in case of excess payment or double payment of TDS.

Have u deposited total TDS amount deducted??

If u have deposited Total TDS deducted and there will be no penalty of excess deduction and payment of TDS.

If u have nly deducted excess amount and not deposited the whole amount, just refund the excess amount to concern person..

Arun (a) (65 Points)
Replied 27 April 2012

Yes, TDS amount already paid but now auditors has raised the queiry that i have deducted excess tds on rent amount and the same they have shown in queiry report.

Thanks and regards,

Anupreksha Thote (CA) (285 Points)
Replied 27 April 2012

As you have already paid the amount, take base as tds amount paid and do reverse calculation. Take that amount as Value of service provided and make provision for difference amount in books and adjust that against next transaction with tht party..Also show accordingly in TDS return..

CA Pankaj Warke (Fin Man) (268 Points)
Replied 27 April 2012

Dear Arun,

As you have deducted Tax on rent + S Tax and also deposited the same, you can issue Form 16A stating the actual amount deducted (even if excess) to the party. THere is no Non-compliance and no penalty leviable for excess TDS.

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