tds deduction including servicetax or excluding

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 March 2011 Wile auditing we found in one expenses they deduct tds after servicetax but in another expenses head they deduct including servicetax, so there is any impact on accounting standards or accounting, or any where

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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21 March 2011 only tds on rent should be deducted excluding service tax otherwise rest of all tds should be deducted including s.t

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 March 2011 No such impact. No problems also.

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. However, this analogy is not applicable to TDS under other sections.

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CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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21 March 2011 In case of Rent , TDS is not required to be deducted as per the above mentioned circualar. For rest of expense, TDS were required to be deducted on the Bill amount which is including the Service tax, even if it may be a Tax on tax...