tds deduction

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 August 2010 Sir,

service provider has raised for Rs 11030/-
(Rs 10000+ service tax Rs 1030/-)
so TDS Deducted on which amount Rs 10000/- or Rs 11030/- & why

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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05 August 2010 tds need to deduct on Rs.11030/-

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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05 August 2010 As per Circular No.4/2008 dated 28.4.2008, it was clarified that TDS on rental payments would be required to be made only on the basic rental amount without including service tax. In other words, TDS should not be made on the service tax portion of the rent.

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taxindiaconnect

taxindiaconnect (Expert)
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05 August 2010 From the despcription given in the question, it does not appear that the payment made is for rent, hence the TDS needs to be deducted Including the amount of service tax also. However the amount of service provision does not seems to be attracting TDS provisions at all.

VINOD ARORA

VINOD ARORA (Expert)
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05 August 2010 Except for S. 194-I (Rent Payments), all other payments (ncluding 194-C, 194-J, etc., all taxes paid to the supplier/vendor/service provider should be considered for deduction of TDS on gross paid amount. However, have a look on threshold limits as well for attracting TDS.