14 May 2012
Yes. CBDT has clarified wide Circular no. 4/2008 dated 28.04.2008 that Service Tax paid by the tenant does not partake the nature of income of the landlord and therefor TDS is required to deduct without ST amount.
Section 194I speaks about "ANY INCOME" while other sections speak about "ANY SUM", this is the reason that TDS is deducted on only Rental Income while TDS on other section is on Gross Amount.
Hope you understood the interpretation of the Section.
CAclubindia
