Tds

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Querist : Anonymous

Querist : Anonymous (Querist)

27 May 2014 On what value the TDS is deducted (Basic /Gross) ???
other than Renting.

Nitin Bhuta

Nitin Bhuta (Expert)
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27 May 2014 gross value excluding service tax if charged in the invoice/bill

Guest

Guest (Expert)

27 May 2014 on the bill value less Service tax amount....

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Rupesh Jain

Rupesh Jain (Expert)
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28 May 2014 tds deductible on gross value

CHAPTER XVII-B OF THE INCOME-TAX ACT, 1961 - COLLECTION AND RECOVERY OF
TAX - DEDUCTION AT SOURCE - CLARIFICATION REGARDING TDS UNDER CHAPTER
XVII-B ON SERVICE TAX COMPONENT COMPRISED OF PAYMENTS MADE TO
RESIDENTS
CIRCULAR NO. 1/2014 [F.NO.275/59/2012-IT(B)], DATED 13-1-2014
The Board had issued a Circular No.4/2008 dated 28-04-2008 wherein it was clarified that tax is to be
deducted at source under section 194-I of the Income-tax Act, 1961 (hereafter referred to as 'the Act'),
on the amount of rent paid/payable without including the service tax component.
Representations/letters has been received seeking clarification whether such principle can be extended
to other provisions of the Act also.
2. Attention of CBDT has also been drawn to the judgement of the Hon'ble Rajasthan High Court dated
1-7-2013, in the case of CIT (TDS) Jaipur v. Rajasthan Urban Infrastructure (Income-tax Appeal
No.235, 222, 238 and 239/2011), holding that if as per the terms of the agreement between the payer
and the payee, the amount of service tax is to be paid separately and was not included in the fees for

CHAPTER XVII-B OF THE INCOME-TAX ACT, 1961 - COLLECTION AND RECOVERY OF
TAX - DEDUCTION AT SOURCE - CLARIFICATION REGARDING TDS UNDER CHAPTER
XVII-B ON SERVICE TAX COMPONENT COMPRISED OF PAYMENTS MADE TO
RESIDENTS
CIRCULAR NO. 1/2014 [F.NO.275/59/2012-IT(B)], DATED 13-1-2014
The Board had issued a Circular No.4/2008 dated 28-04-2008 wherein it was clarified that tax is to be
deducted at source under section 194-I of the Income-tax Act, 1961 (hereafter referred to as 'the Act'),
on the amount of rent paid/payable without including the service tax component.
Representations/letters has been received seeking clarification whether such principle can be extended
to other provisions of the Act also.
2. Attention of CBDT has also been drawn to the judgement of the Hon'ble Rajasthan High Court dated
1-7-2013, in the case of CIT (TDS) Jaipur v. Rajasthan Urban Infrastructure (Income-tax Appeal
No.235, 222, 238 and 239/2011), holding that if as per the terms of the agreement between the payer
and the payee, the amount of service tax is to be paid separately and was not included in the fees for
professional services or technical services, no TDS is required to be made on the service tax
component u/s 194J of the Act.
3. The matter has been examined afresh. In exercise of the powers conferred under section 119 of the
Act, the Board has decided that wherever in terms of the agreement/contract between the payer and the
payee, the service tax component comprised in the amount payable to a resident is indicated separately,
tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without
including such service tax component.
4. This circular may be brought to the notice of all officer for compliance.professional services or technical services, no TDS is required to be made on the service tax
component u/s 194J of the Act.
3. The matter has been examined afresh. In exercise of the powers conferred under section 119 of the
Act, the Board has decided that wherever in terms of the agreement/contract between the payer and the
payee, the service tax component comprised in the amount payable to a resident is indicated separately,
tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without
including such service tax component.
4. This circular may be brought to the notice of all officer for compliance.
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Querist : Anonymous

Querist : Anonymous (Querist)

28 May 2014 Sir Rupesh Jain, your answer is little complex to understand, please summurised it in short and specific.

Thanks.

Guest

Guest (Expert)

28 May 2014 deduct tds on bill value less service tax dear..........