Hi All,
I have a query with regard to TDS on rent sec 194I (plant and Machinery)
A vendor provides gensets on rental basis and has invoiced for Rs.90730, nature of expense is hire charges of generator sets. The invoice includes CST charged @ 5.5%. is TDS deductable on the gross amount (excluding CST) or on the Net amount (inclusive of CST)?
Dear swetha,
TDS has to beducted on the invoice value ie 90730/-. As per 194I only Service tax on rent only we can deduct from the the Invoice value but not others.
So the TDS to be deducted will be Rs.1,814.00
As per board circular tds shall be deducted ON INCOME excluding service tax.IF WE GO BY TERM INCOME THE TDS IS TO BE DEDUCTED EXCLUDING CST5.5%
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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