TDS ON RENT

Page no : 2

KRISHNA PALLAVUR (CA FINAL) (79 Points)
Replied 11 March 2010

TDS on RENT ONLY is deducted without service tax.... Regards KRISHNA

ca tarun sharma (SERVICE) (277 Points)
Replied 11 March 2010

as per sec 194I specified person who is responsible for paying to any resident ANY INCOME BY WAY OF RENT shall deduct tds at prescribed rate on such amount. However in other sec ANY SUM payable is liable for tds (including service tax & own pocket reimbursement)

Sumiti Jain (FP) (1364 Points)
Replied 11 March 2010

Hi Sachin,

ur query can be solved through the Circular No.4/2008 of CBDT ==

CIRCULAR NO. 4/2008, DATED 28-4-2008

The Central Board of Direct Taxes has through this circular has clarified 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.

The complete text of the above-mentioned circular can be downloaded from the following link:

https://law.incometaxindia.gov.in/TaxmannDit/DisplayPage/dpage1.aspx?md=1

Prasanth Nair V (ACA,ACS,CWA Final,Mcom) (557 Points)
Replied 11 March 2010

Yes TDS should be deducted on the Amount exclusive of Service Tax based on the Circular issued by CBDT.

R.Suresh (Sr. Executive) (394 Points)
Replied 11 March 2010

With out service Tax

Priyadharshini (articled assistant) (64 Points)
Replied 11 March 2010

Just check out the definition of rent... There it s mentioned as "Any sum payable"... so only for RENT u need to deduct TDS including ST... While in other cases u no need to include service tax...

Bala (Student) (498 Points)
Replied 11 March 2010

Dear friend Priyadharshini,

AS per CBDT CircularNo.4/2008 dt 28.4.2008 " Service tax paid by the tenant doesnt partake the nature of income of the landlord. The landlord only acts as a collecting agency for Government for collection of service tax. 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."

Further details please refer to the following link

https://law.incometaxindia.gov.in/TaxmannDit/DisplayPage/dpage1.aspx?md=1