TDS

This query is : Resolved

Chinmay Desai (Querist)
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08 December 2009 I have a doubt as to treatment of service tax while computing threshold limit u/s 194C,194J & 194I.Should they be included for the purpose of computing the value?Say if the amount payable towards Pure rent is Rs.110000 p.a. + 10.3% service tax and I am availing Cenvat credit for the service tax paid.then should I be liable to deduct TDS

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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09 December 2009 Service tax will not be included to consider the limit of rent. That it; you are not liable to deduct tax.

Ca Rakhecha
Surat

Kishanlal Paliwal

Kishanlal Paliwal (Expert)
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09 December 2009 To be more specific on the point, as per Supreme Court ruling, exclussion of service tax for the purpose of TDS is applicable IN THE CASE OF RENT ONLY.

All viewers are requested to kindly take a note of it.

Regards

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Chinmay Desai

Chinmay Desai (Querist)
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09 December 2009 Mr.Paliwal
u r saying dat service tax will be excluded only in case of rent(194I) & it will be included for the purpose of 194C,194H & 194J?

MAHENDRA KUMAR BAGRECHA

MAHENDRA KUMAR BAGRECHA (Expert)
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09 December 2009 Dear Mr Desai,

Recently CBDT has issued a circular where they have clarified that TDS not be deducted on Service tax charged in case of Rental income.hence we should not consider TDS on service tax portion but circular is silent on tds on service tax in case of 194C,J etc. hence, we should deduct tds on service tax portion in other cases.