24 November 2012
on which amount the tds should be deducted on lease money for exa. lease money RS.1200000 servise tax 148320 and tds @ 10% can we deduct tds on 1200000+148320 or excluding service tax
24 November 2012
You should deduct tax only on the amount of lease rent i.e. Rs. 12,00,000/- you don't need to deduct tax on the amount of service tax. As per the provisions of TDS you need not do deduct tax on the amount of tax (service tax etc.). my question is lease rent includes principle amount & interest charges & there is S.T. only on the amount of interest. in your case excess service tax charged by your party, subject to Finance Lease.
CAclubindia
