TDS ON RENT

TDS 1778 views 22 replies

Dear All

Please Suggest

TDS on Rent u/s 194-I is deduct including Service Tax or without Service Tax .

 

Thanks to All

Replies (22)

I think on full amount you have to deduct TDS, wait for others view

Its without service tax

As per Cicular No. 04/2008 dated 28-04-08. No TDS is deductible on Service Tax Portion only in case or Rent.. You should deduct TDS with service tax.

Sachin & Deepak now the clarifiation by CBDT has been issued that service tax should not be included while deducting tax at source on rent paid.
 

For more details refer to

https://www.cainindia.org/news/6_2008/circular_no_42008_dated_2842008.html

Look, my genereal understanding says that SERVICE TAX IS NOT THE INCOME OF RENT RECEIVER....

 

 

 

So, from where does TDS on the same arises??? The receiver receives net amount in his hands at the end.., so why will TDS be deducted on service tax???

In case of other sections, whether this circular prevails? Please clarify.

Hey... Without Service tax yer......This is the only exception for TDS...............

totally agreed with what Dhiraj Said

Explanation:-

The amount recieved by the service provideras service tax is not an income rather he is liable to deposit the amount collected as service tax to the credit of central government within prescribed time lmit.

so the amount of service tax paid by reciever of service is indirectly paid to central government and according to section 196 tax shall not be deducted on any amount payable to government.

hence in the above case tds should be deducted only on the amount of rent and not on othe amount of service tax.

A circular issued by CBDTon this stating that the TDS on Rent is without including Service Tax. It is in case of Rent only in other cases TDS is deductable including Service Tax.

AS pe Circular No.4 dated 28.4.2008 service tax is not required to be deducted on rent as it does not partake the character of income. But it applies only to sec 194I and not for 194J......

Balakrishnan & Supporter of this views are 100% correct.............

Tax on Rent only and not inclusion of serice tax for sec194I   only as per Circular


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