this is Srikanth, i want 2 know that whether TDS on Professional Charges is to be deducted on Amount including Service Tax or Not, Plz reply
this is Srikanth, i want 2 know that whether TDS on Professional Charges is to be deducted on Amount including Service Tax or Not, Plz reply
yes, TDS has to be deducted on the Gross amount which is inclusive of Service tax.
TDS on professional services is to be deducted including service tax also. In the case of TDS on rent it is to be deducted excluding the amount of Service Tax.
Regards
Naveen Sharma
You have to deducte from the gross amount.
I agree with Naveen Kumar.
Hai,
Please find the attachment with regard to your query. It is applicable to not only for rent, but also Professional charges.
Thanks,
Giri
The attached file says that it is to be deducted on gross amount in the case of rent.
Hai Naveen Kumar,
Glad to meet you, Please refer the attachment with regard to TDS on Inclusive of service tax. We need to deduct TDS on Gross Amount i.e inclusive of Service Tax
Yes Mr. Giribabu is right!
Dear Giribabu,
Pleasr refer the circular No 4/2008, Dated 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
the department clarification only talks specifically of rent(194J).. but it should be viewed as a matter of "Substance over form"..again, in absence of specific direction, to be on the safer side, TDS on professional service should be made on the Gross Amount only..
Please see the attached circular,
TDS on professional services is to be deducted including service tax also. In the case of TDS on rent it is to be deducted excluding the amount of Service Tax
manish
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