02 March 2012
During Q3 - 2011-12, rent was paid to Mr. A of Rs. 33090/-. Out of Rs. 33090/- Rs. 3090/- was Service Tax & Rs. 30000/- was Basic Rent Amt. Now as per CIRCULAR NO. 4/2008, DATED 28-4-2008 issued by IT department. TDS on Rent U/s 194 I, is to be deducted on the amount of Rent EXCLUDING SERVICE TAX i.e. on the Basic Rent Amount of Rs. 30000/-. Accordingly we have deducted TDS of Rs. 3000/- @ of 10% on Rs. 30000/- & filed the TDS return accordingly. But in TAN Login under "Defaults" tab, it shows that we have not deducted TDS on Service Tax amount of Rs. 3090/- & are considering it as short deduction of Rs. 309/- (10% of 3090/-) Kindly let us know how to resolve the issue?
03 March 2012
Purav, the default list is the early intimation by the ITD, but it has not updated with the recent changes w.r.t circulars etc. As per the circular you have done correctly, the call to take at the time of TDS notice if sereved to you. At the time reply to ITD you need to quote the circular.
CAclubindia
