tds on rent

Dear Aasita,

The circular came on 28/04/2008 and become effective from the same date.

Or check here https://www.taxworry.com/2008/05/no-tds-on-service-tax-included-in-rent.html

Thanks & Regards

Hitesh

The circular will be effective from the date of issue i.e. 28.04.2008

Hi,

It is circular No.4 dt 28/04/2008, which is effective from the respective date. A person is not supposed to deduct tax on Service Tax portion of Rent.

Circular no. 4/2008, dated 28/4/2008

the lanlord only acts as a collecting agent for government for collection of service tax.There for it has been decided that TDS  under sec 194I of IT act would be required to be made on the amount of rent paid/payable without including the srevice tax........

Example:-

                for calculating the amount of 120000 now ST amount should be excluded , suppose if a person pay rent of Rs. 115000 to a single person and 12.36% st will be 14214 and some total will be 129214 but still tds is not deductable since 115000 is less than 120000 prescribed in  194I

circuler no -4  dt 28-04-2008

this circuler active on same date . of issue

Circuler No. - 4  dt 28-04-2008

HAVE ANYONE HEARD, WHAT ABOUT THE SERVICE TAX PORTION OF SERVICE TAX FOR TDS u/s 194C or 194J. GIVE YOUR ADVICE.

For section 194C or 194J the TDs has to be deducted on the amount inclusive of service tax.