No TDS on ST portion u/s 194 I !!!!

Where u get this circular, can you tell me number of circular

hi

u r right... we have to deduct tds on net of service tax bill

e.g. ur bill is 100 and service tax is 12.36rs.u have to deduct 10.3% of rs 100

This circular 4/2008 dt 28.4.2008 will supersede all previous circulars or clarifications issued by Department / commissionrates for two sections only 194I and 194 H. W.e.f 1/4/2008, this circular will be effective and besides 194 I it will also applicable for 194H.

For other sections i.e 194 H or 194 C the old practice will remains the same.

Circular No is 4 /2008 dated 28.4.2008 and available of site of CBDT and caclubindia

Direct Tax Circular No. 4 dated 28 April 2008

Direct Tax Circular No. 4 dated 28 April 2008

First of all CBDT circular overrules the clarification of other commisioinerates...

now your question wud be whether same anology can be drawn for other sections? so the answer is: " in all other sections in TDS chap.the words" Amt.paid or credited" are  written but in the sections 194J and 194I "on income" are written. so the same anology can be drawn for S. 194J also. but as a safegaurd we deduct it from the whole amount....

Circular's  language:-

Service tax paid by the tenant doesn't partake the nature of "income" of the landlord. The landlord only acts as a collecting agency for Government for collection of Service Tax. Therefore it has been decided that tax deduction at source (TDS) under sections 194-I of Income Tax Act would be required to be made on the amount of rent paid/payable without including the service tax.

can you please quote the circular no.

Circular No has been mentioned by Mr. Sanjeev Varshney