Tds on rent

yes tds applicable 

thank you for your reply. Would please mention supporting Notification , article etc in this regards

NO,TDS will  be deducted only on the amount of rent, not on GST amount so if ur rent payment is not exceeding 180000 then you dont need to deduct tds, bcoz GST is not income for the landlord so it is not subjected to income tax.

CIRCULAR No. 23 /2017 clarifies wherever GST charged seperately, then No TDS to be deducted on GST amount. Hence No TDS to be deducted on the Rent amount which is stilll under the threshold Limit. However you have to mention this rent paid and non deduction of TDS in the quarterly TDS statement, mentioning the code for under "Threshold Limit".

Thank you expert for your reply..

with circular no 23/2017 it is clear not to deduct tds on gst component but the circular not clarifying due to GST component if annual paid / credited amount crossing threshold limit i.e. 1.80 lakh then not to deduct TDS on amount excluding GST. So it is requested would you please provide circular/notification in this regard so we can keep the same with us to valid reason for non deduction of TDS if in future assessing officer challenged non deduction of TDS on rent even total amount paid/credited crossed threshold limit.

thank you.

Dear Pradip,

While considering the amount paid/credited to the party, it is inherent provision that one should understood, the Tax component should be excluded Since the Tax component is not forming part of the party's income.

for ex: lets assume, the annual rent is 200000+36000(being GST @ 18%), you have to deduct 20000 being 10% on the basic amount. Further when you file the TDS return, you cannot show amount paid is 236000 and TDS deducted is 20000 which will cause short deduction error.

So, in your case, It is inherent in the said notification that tax component is not the income of the party.
and Further you have to file the return for this 180000+32400 also. but Tax need not to be deducted. you have to enter the "amount paid/credited column" 180000 only, eventhough the amount paid is 180000+32400. and in "TDS deducted" column you should mention "0" and the reason code you have to select for "below Threshold Limit"