Tds deductd excldng ser.tx @10% in rpu amt.pd colmn?

TDS 459 views 2 replies

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On Rent and Professional Services TDS is deducted @ 10% excluding service Tax. The problem is like this. Rent 1,00,000Serv.Tax @ 12.36% TDS @ 10% on 1,00,000. Now while filing the TDS return In the amount paid column if i put 1,00,000+Service tax amount of Rs, 12360 the RPU will not accept. If I put only 1,00,000 will this legally be correct OR does it amount to misleading the ........

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Replies (2)

Ranganathan K

Manager-Accounts & Audit

329 Points Joined January 2012

Hi Ram,

Don't worry, you did a right thing. The TDS on rent can be made only on rent amount excluding service tax. Please have the below IT circular for your reference.

[Circular No.4/2008 dt 28.03.2008 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]

https://law.incometaxindia.gov.in/DIT/Circulars.aspx

DDDDDD

176 Points Joined September 2010

In case of Section 194J (professional & technical service) TDS is to be deducted on the amount inclusive of service tax. (Refer circular 275/73/2007IT(B) dated 30-6-2008) "Section 194J (1) states that - Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of..........." On the other hand In case of section 194-I TDS is to be deducted on the amount exclusive of service tax (Refer Circular 4 dated 28-4-2008) "Section 194I states that Any person, not being an individual or a Hindu undivided family, who is responsible for paying to 86[a resident] any income by way of rent........." Thus as discussed above the treatment which u hav given in case of rent is correct. In return also you should show oly the amount excludin service tax. But in case of professional chg u should show amount includin service tax