Hi, I have a query... Let Rent invoice is Rs.1Lakh Per month according to contract. Landlord charges service tax @ 10.3%... So, invoice value is Rs.110,300/- . Can i Dedcut TDS @ 10% on Rs.110,300/- ya only on Rs.1Lakh. plz suggest me.
Mayadhar Rout (Student) (37 Points)
14 August 2011Hi, I have a query... Let Rent invoice is Rs.1Lakh Per month according to contract. Landlord charges service tax @ 10.3%... So, invoice value is Rs.110,300/- . Can i Dedcut TDS @ 10% on Rs.110,300/- ya only on Rs.1Lakh. plz suggest me.
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 14 August 2011
as per Circular issed by CBDT,
TDS (in case of rent) is to be deducetd on amount exclusive of service tax
so, in ur case...
it is to be deducted on Rs. 1Lakh
plz correct me if m wrng
| Originally posted by : CA SUMIT GROVER | ||
 |
as per Circular issed by CBDT, TDS (in case of rent) is to be deducetd on amount exclusive of service tax so, in ur case... it is to be deducted on1Lakh AGREED |
|
CA Saiyum khan
(Practicing CA)
(685 Points)
Replied 15 August 2011
In my opinion if input service tax credit is not taken and entire amount of rent inclusive of service tax is charged to P&L a/c then TDS should be deducted on amount inclusive of service tax.
Prachi Jindal
(CA-Article-Final-Student)
(129 Points)
Replied 15 August 2011
TDS to be deducted on Rs 1 lakh only...!!
CA.Ankit Juneja
(Assisstant manager - Accounts in a UK Based MNC)
(189 Points)
Replied 15 August 2011
Hi All... TDS will be deducted on 1 Lakhs only, which is the amount exclusive of service tax. CBDT Circular is the reason behind this...
But then Question arises why TDS on professional payment U/S 194J is deducted on amount inclusive of service tax
The reason behind this is if you go through both the sections (194 I & J) you will find that
(a) fifteen per cent if the payee is an individual or a Hindu undivided family; and
(b) twenty per cent in other cases :
shall, at the time of credit of such sum to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to 54[ten] per cent of such sum as income-tax on income comprised therein :
This view has been upheld by Bombay Chamber of commerce see letter below
|
https://www.simpletaxindia.org/ |
https://www.simpletaxindia.org/
nadakuditi Bhargav
(Articled Assistant)
(28 Points)
Replied 16 August 2011
TDS to be deducted on Rs.1,10,300 i.e inclusive of service tax.
mayank
(auditor)
(41 Points)
Replied 17 August 2011
Hi freinds....
I have a party. Who is raising the rent bill on me. I was deducting TDS on Rent Bill. But now that pary is saying that I am comming below the limit. So, can I stop dedution TDS on that Rent?......
Please, suggest me.
R.S.KARTHIK
(Article Assistant----Final Student)
(59 Points)
Replied 19 August 2011
Dear Mayank, 
To deduct TDS on rent , the payment should be more than 1,80,000 per annum , so make sure the payment is not more
than such amount before stopping deduction. Some more ......
........the rate of TDS on rent to be deducted is 2% on Plant
& machinery and 10% on Land and Building...
...these rates are applicable from october 1 2009.
Dear Mayadar,
As others rightly said ....it is on 1,00,000 
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