regarding TDS deduction on professional&consultancy bills

TDS 4554 views 19 replies

roshani

CA student

22 Points Joined July 2008

it is only for Sec 194I

Replies (19)

roshani

CA student

22 Points Joined July 2008

it is only for Sec 194I

Issue: CBEC has earlier clarified that TDS in terms of Sec 194-I [TDS on rental payment] shall be deducted on “value exclusive of ST”. Whether TDS in terms of Sec 194-J [TDS on fees for professional or technical services] shall in the same manner be deducted on “value exclusive of ST amount” or shall it be deductive on “value inclusive of ST amount”?

Clarification: The payment made under sec 194-J differs significantly from payments made under section 194-I in the way that

èin case of Sec 194-I TDS has to be deducted on ANY INCOME paid as rent

èHowever, in case of Sec 194-J TDS has to be deducted on ANY SUM paid as professional and technical fees.

Board has decided to exclude TDS on service tax component on rents payment because it was construed that service tax payment can not be regarded as income of landlord. Since section 194-J covers any sum paid, therefore, Board has decided not to extend the scope of Earlier Circular to the payment made under Sec 194-J.

Guest

440105 Points Joined August 2012

Originally posted by :raju
"	service tax is included in Professional&consultancy ,and any other bill.TDS is deducted on total bill amount,but actually service tax is not an income to the receipient. Is it correct deducting TDS on servicetax	"

Guest

440105 Points Joined August 2012


"		"

if equipments are attechhed with the contracter on monthly basis what % will be the TDS on monthly payment.

Guest

440105 Points Joined August 2012

Originally posted by :raju
"	service tax is included in Professional&consultancy ,and any other bill.TDS is deducted on total bill amount,but actually service tax is not an income to the receipient. Is it correct deducting TDS on servicetax	"