TDS on rent

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Gopa

Gopa (Querist)
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16 November 2009 is TDS on Rent should deduct on the base value of the Invoice i.e. exclusive service tax?

Sunil

Sunil (Expert)
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16 November 2009 You have to deduct it inclusive of the Service Tax. Service Tax being an indirect tax on the service forms an integral part of the bill for service. Same way you are also claiming 80C deduction on LIC Premium inclusive of the service tax.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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16 November 2009 Yes exclusive of service tax. For details refer CBDT Circular 4 of 2008 dated 28/04/2008.

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chetan soni

chetan soni (Expert)
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16 November 2009 Agreed with B.Chackrapani Warrier. Don't deduct the tds on service part.

Gopa

Gopa (Querist)
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17 November 2009 can u please clarify the reason why only in case of TDS on Rent will be deducted from the vase value of invoice excluding service portion?

in CBDT Circular 4 of 2008 dated 28/04/2008 that is mentioned that we are working as collecting agent on behalf of Govt. in case of Service tax. but that is true for all type of Service tax.

so what is the reson for make this circular against Rent only?

chetan soni

chetan soni (Expert)
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17 November 2009 Gopa we all agree with your contention, but the circular is issued only against rental income tds deduction u/s 194I.

You can take this circular as base & file the petition for issuing the same circular for all tds provision sections.