15 January 2009
The said Circular No 4/2008 has been issued to give instructions which are clarificatory in nature. The intension of the statute is clear that the law never intended to deduct tax u/s 194I on Service tax charged on the rental amount as billed. Further, it is not an amendment where the date of its applicability be checked. In other words it may be correctly said that the Circular is applicable retrospectively from the date service tax has been levied on the rent and question of TDS on Service Tax has arisen.