Service Tax deduction under House Property

Hi Amir,

For this i have the departments answer from circular no 4 of 2008 (TDS & 194-I)

1. No.....

 2. NA

WHY?? (U ONTO SOMETHING??)

Thanks Bhai......

R u sure.....!

I have seen that Circular......But nothing is coming out in clear terms..........

Further I think the principal laid down by that circular is only for the purposes of TDS........

May be I m referring to only an extract of that circular.........If u have complete text, can u just attach it.....

Thanks again...........

Deduction of Tax at source on Service Tax - The payments made under section 194-I differ significantly from payment made under section 194J in the way that in the case of 194-I TDS has to be deducted on any income paid as rent. However, in the case of section 194J TDS has to be deducted on any sum paid as professional and technical fees. The Board had decided to exclude TDS on service tax component on rental payment because it was construed that service tax payment cannot be regarded as income of the landlord. Since section 194J covers any sum paid, therefore the board has decided not to extend the cope of Circu lar No. 4/2008, dated April 28, 2008 to such payment under section 194J - Letter F.No. 275/73/2007-IT(B), dated 30-6-2008.

Source:

https://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2009ITAct/cirsec194J.htm

Note: Its the Board's own construction of law..... They might admit that they are wrong someday! :P

OMG.... never ever thought that AMIR will have a doubt even..., man u r the genius, how can u have any doubt??

Nywz, whatever resident evil has said is correct, still u want further clarification, can visit :

https://www.simpletaxindia.org/2009/01/service-tax-on-rentimmovable-property.html

HA HA HA...........

Briliant -

"Note: Its the Board's own construction of law..... They might admit that they are wrong someday! :P"

Come on Bhai, Plz conclude it......Wots ur final call.........Same as first post..........

OK.... OK... It's still "NO" to me...

This is your final warning bro... tell me ur pulling my legs or something!!

I dont see y u asked a doubt like this...

What are u onto??

Hey Dhiraj,

Come yaar dont pull my leg..........:)

One thing Bhai, the above  link talks about Service Tax & not its treatment under Income Tax...

Plz can u paste the specific lines or para which taks abut Income Tax ................

G.K. Bhai,

Relax ...!

Its not that I m trying to be fishy..........

Its just that I had a genuine doubt & from ur reply I thought there r two opinions.....

Just seeking a clarification...........

By d way that "ha ha " in d above post  was  an appreciation to ur sense of humor/comment...:)) 

Whew... :o

cos i was kinda sure u were playing along to pull ma leg in the end with something....

But its not part of annual value in sec 23, which speaks only of rent right....?

Ok then...

Amir, general understanding states that ACTUAL RENT shall be taken net of SERVICE TAX...

I mean, the tax charged is not an income for an assessee... Moreover, there seems no reason for including such tax also in the calculation of actual rent...

I tried to find reliable source or any case study, but could not get..

So, as per my understanding, or rather normal logical understanding, such service tax should be excluded from the actual rent and for ur 2nd Q solves itself

I really feel proud to participate in Mr.Amir brother's Query......

The "Genius" has a query....mmmm...........

Agree with G.K. bhai........Actual rent shall be taken as inclusive of Service Tax - No..

I dont know the correct answer.. But i appreciate My friend Amir..A GREAT man comes down to ask a query.. im a part of it.. feeling good.

Hey friends,

Come on yaar, u all have started pulling my leg ........:))

Thnks 2 all of u take for taking part in the discussion........

To conclude, I also think G.K. , Dhiraj & Balaji's reply are correct.

Thanks again:))

Regards

thanx 4 sharing.......................i think any 1 can have doubt then y dont amir can?....................