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Tds on service tax chargd on rent

Babukmenon (Manager-Accounts) (25 Points)

17 January 2012

Should Income Tax should be deducted on the Service tax Charged on rent?.Suppose I have received a bill for Rent Rs.7,334.96 ie Rent Rs.6,650/- and service tax Rs.684.96.The question is whether Tds should be made on Rs.6,650/- or total amount Rs.7,334.96.Kindly clarify

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2 Replies

Kumar-Sujeet (Sr. Accounts Officer) (282 Points)
Replied 17 January 2012

U only deduct on rent i.e. 665

As Rent is the income of landlord not the service tax.

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Deepak Gupta (CA Student) (15922 Points)
Replied 17 January 2012

Originally posted by : Babukmenon
	Should Income Tax should be deducted on the Service tax Charged on rent?.Suppose I have received a bill for Rent 7,334.96 ie Rent 6,650/- and service tax 684.96.The question is whether Tds should be made on 6,650/- or total amount 7,334.96.Kindly clarify

Deduction of Tax on Service Tax component of rental income vide circular No. 4/2008 of CBDT dt. 28.4.2008 it has been clarified that deduction u/s. 194 I would be required to be made on the amount of rent paid/payable without including the Service Tax. This is so, as Service Tax does not partake the nature of income of the landlord.