TDS IS TO BE DEDUCTED ON RENT EXCLUSIVE OF SERVICE TAX LEVY ON IT. BUT CAN ANYBODY TELL US WHAT SHOULD WE WRITE ON THE DEDUCTEE SHEET UNDER THE HEAD AMOUNT PAID OR CREDITED ? wEATHER AMT INCLUSIVE OF SERVICE TAX OR EXCLUSIVE OF SERVICE TAX.
TDS IS TO BE DEDUCTED ON RENT EXCLUSIVE OF SERVICE TAX LEVY ON IT. BUT CAN ANYBODY TELL US WHAT SHOULD WE WRITE ON THE DEDUCTEE SHEET UNDER THE HEAD AMOUNT PAID OR CREDITED ? wEATHER AMT INCLUSIVE OF SERVICE TAX OR EXCLUSIVE OF SERVICE TAX.
Dear Sheetal!
Circular No: 4/2008 dated 28.04.2008 categorically excludes the service tax component on rent from the amount liable for TDS u/s. 194I. Such being the case, if the rent + service tax is provided as the amount paid to the deductee in the e-TDS return, it would result in unnessary demand from the IT department for which the deductor would be required to clarify. I feel only the amount of rent exclusive of service tax component to be entered in the above column.
Do post your response!
The amount of Rent exclusive of service tax is liable for TDS and accordingly the same is to be mentioned under the head amount paid or credited in the deductee sheet.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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