Tds to be deducted

Rent payable = 20,000/-

Add service tax = 2,472/-

Total rent payable = 22,472/-

TDS at 10%

Dr...Rent payable a/c  ....Rs. 22,472/-

Cr... Bank a/c........Rs. 20,472/-

Cr...TDS deduction a/c ....Rs. 2,000/-

Hope its correct.

Dear Shahad,

as rightly said by you, TDS is to deducted on the portion excluding service tax.

then, the person making payment of the sum will deduct TDS on Rs. 20000.. i.e. without ST portion.

Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com
+91-9891400405

Please refer to Circular 4/2008 which states that TDS on rent has to be done excluding the service tax component..

Hence as far as TDS U/s 194-I is concerned, the same can be done excluding the ST component.

As per circular 4/2008,TDS needs to be deducted only on Rent amount and not on the service tax portion.Though,walking safer side,you may deduct TDS on the whole amount because ultimately the person whose TDS is being deducted will get credit of the same.

TDS will be deducted only on rent amount i.e. 2000/-

no need to deduct TDS on service tax.

you can claim this rent in P/L without hesitation.

Dear Rajeev,

If assessee has more than 1 property... then, limit of Rs. 1.8 lacs apply to each property individually... (provided the tenant is different in each property)
However, if the tenant and the landlord are same person and for one property the payment is to be made of Rs. 1 lakh and for another Rs. 1.5 lakh.... then, TDS is required to be deducted on both properties. (Amendment by Finance Act, 2010)

 

Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com
+91-9891400405

Dear Lovelyji

Can you provide me the section i mean the extract of amendment and is there any case law for same. Thank you in advance